Charter Hall Office REIT has been acquired by a consortium comprising Reco Ambrosia, an affiliate of Government of Singapore Investment Corporation, the Canadian pension fund Public Sector Pension Investment Board, and Charter Hall Property Trust.

Minter Ellison advised the syndicate of banks, while Allens advised the consortium. Gilbert + Tobin advised Charter Hall Office REIT on the deal.

The acquisition was by court-approved scheme of arrangement. The US$1.71 billion sale of Charter Hall Office REIT's US property portfolio was a precondition of the transaction. Charter Hall Office REIT has now been delisted.

Charter Hall Office REIT owns interests in 18 commercial office buildings across Australia with a portfolio valuation of approximately A$1.9 billion.

A syndicate of banks provided the A$1 billion financing in relation to the acquisition.

Daniel Marks, the lead Minter Ellison partner on the deal, said the privatisation “highlights the continued investment interest of offshore sovereign wealth funds and pension funds in well-managed quality Australian property portfolios, and the ability to attract syndicated debt."        

Marks said the conditionality, risks and timing around the sale of the US-asset portfolio introduced complexity into the scheme of arrangement and the associated debt finance conditions. 

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Lawyers in the Minters team said the property portfolio included a number of complex co-ownership holdings in commercial office buildings, including a development asset, requiring negotiation of documentation with several different co-owners as a pre-condition to financial close and scheme implementation.