Charter Hall fund says Melbourne's iconic 1 Nicholson Street has new tenants

Property group Charter Hall Group has announced that its Direct Office Fund (DOF) has leased several floors in the glass wall skyscraper, 1 Nicholson Street, on the northern edge of Melbourne CBD for an eight-year term.

Leading water treatment and chemicals company Ixom has leased three levels of the building.

1 Nicholson Street is Melbourne’s first glass curtain wall facade skyscraper, designed by Bates Smart and built in 1958. The building comprises 18 levels of office, ground floor retail cafe and basement parking.

It is located opposite Parliament Gardens at the intersection of Lonsdale/Albert and Nicholson/Spring Streets with commanding views and natural light throughout.

Head of Charter Hall Direct, Steven Bennett said, “We are pleased to partner with an existing customer to deliver property solutions that meet their individual business requirements and create value.”

“We are excited that Ixom will continue to be located at the iconic 1 Nicholson Street building, and that they value the quality of the building and its strategic location in one of the most desirable precincts of the city,” Bennett said.

DOF currently comprises 10 office buildings in Sydney, Melbourne, Brisbane and Perth with a total value of $1.025 billion as of December 31, 2016.

The fund is currently open to investors who can expect to earn 6.25% per annum income distribution with the prospect of capital growth and the advantage of partial tax deferred tax returns.

DOF returned 15.9 percent per annum in the 12 months to 31 December 2016.

This compares to the benchmark return - the MSCI/IPD Australian Unlisted Wholesale Property Fund Index - of 11.1 percent over the same period.

“DOF is a flagship fund for the Charter Hall Direct business,” said Bennett.

"Its key characteristics of long WALE (weighted average lease expiry), 100 percent occupancy, exposure to the strategic markets of Sydney and Melbourne accounting for over 75% of the fund’s portfolio, conservative gearing, and high quality tenants, is emblematic of the Charter Hall approach to property investing and a reason for our ongoing success,” Bennett added.