GPT Group has teamed with GPT Wholesale Office Fund (GWOF) to purchase the CBW property in Melbourne from CBUS Property for $608.1 million.
GPT and GWOF will each acquire a 50 per cent interest in CBW -- otherwise known as the 'Corner of Bourke and William’ -- with the deal representing a capitalisation rate of 6.5 per cent.
CBW comprises 181 William Street (a 26-level office tower), 550 Bourke Street (a 19-level office tower) and Goldsbrough Lane, which contains 5,313 square metres of ground and mezzanine retail space.
GPT’s chief investment officer Carmel Hourigan said the deal was another example of the group leveraging its balance sheet capacity and relationship with its funds to secure large scale assets.
"This transaction takes acquisitions for the Group to $1.7 billion since the start of 2014," Ms Hourigan said.
"Importantly, the balance sheet will secure additional property management and funds management fees on top of its 50 per cent share of the transaction, resulting in an enhanced return."
Asset income from the properties is underpinned by high-profile leases including IAG, Deloitte, Ashurst, Baker & McKenzie and Crowe Horwath.
Settlement of the transaction is due to occur next month.