Charter Hall Group executed a fully underwritten $3.35 billion green loan on behalf of one of its funds.
On Monday, the specialist fund manager confirmed the transaction was part of a strategic capital management initiative for its $8.6 billion flagship office fund, Charter Hall Prime Office Fund (CPOF).
According to Charter Hall, the strategic capital management initiative has enabled CPOF to leverage its sustainability credentials and will facilitate the delivery of its superior development pipeline.
Led by CBA, WBC, ANZ, HSBC and SMBC as Mandated Arrangers, Underwriters and Bookrunners (MLAUB), the transaction takes Charter Hall’s platform-wide sustainable finance to over $9 billion , all in the office sector.
“This transaction reinforces the strength of CPOF’s sustainability credentials and the competitive advantage that our investment in sustainability provides our investors,” said CPOF fund manager Miriam Patterson.
“This is largely due to Charter Hall’s approach of using independent green building assessment tools to assess performance and drive continuous improvement,” Patterson said.
“As a result, we have been able to implement this initiative effectively, securing financial commitments that provide unrivaled flexibility in the market. »
Patterson noted that the deal also allows for operational flexibility, reducing the average age of the portfolio, and takes advantage of the growing divide in tenant demand for modern, state-of-the-art office space.
She said this includes the development of new premium towers, such as the recently completed assets of 60 King William, Wesley Place and 555 Collins Street, as well as the under-construction assets of Chifley South in the Sydney CBD and 360 Queen Street in Brisbane.
“Our portfolio curation also allows us to maintain an industry-leading WALE portfolio, with our track record of new developments fully let before or after completion achieving longer WALEs than other stabilized assets.
Charter Hall Group Treasurer Darren Beatty added: “We appreciate the support of MLAUBs in executing this significant transaction, which was significantly oversubscribed, reflecting the strength of the fund and the reputation of the Charter Hall platform among financial. »
Beatty revealed that, through this initiative, Charter Hall has extended the fund’s weighted average debt maturity profile to 5.2 years – a “market-leading profile” for an office fund.
