The Charter Hall Group (ASX: CHC) share price is pushing higher on Wednesday after providing an update on its flagship office fund CPOF.
In afternoon trade the property company's shares are up slightly to $14.28.
This leaves the Charter Hall share price trading within sight of its record high of $14.79.
What did Charter Hall announce?
This afternoon Charter Hall announced that CPOF has agreed a pre-lease from a leading global technology company as the anchor tenant customer for its new $750 million 555 Collins Street office development.
It also revealed that construction will now commence having completed the demolition process during 2020. Lendlease Group (ASX: LLC) has been named as the project's construction partner.
What is the 555 project?
According to the release, the 555 project initially includes 48,000sqm of premium grade office space and over 2,300sqm of retail amenity.
The company notes that the project secured planning approval from the Victorian State Government under its Building Recovery Taskforce earlier in the year.
Management advised that it will accommodate up to 7,500 workers and provide a future-proofed workplace that will empower tenants and their staff to work in their own authentic way, supported with world-leading tech-enabled environments and health and wellness facilities.
Charter Hall's Managing Director and Group CEO, David Harrison, commented: "This major pre-commitment provides the momentum for CPOF to proceed with construction and advance further leasing interest during the development phase, as we did on the Wesley project, which was 100% pre committed 12 months before practical completion."
"555 Collins Street is a visionary commercial precinct that will create a new benchmark for office development in Australia. We expect a flight to high quality modern office buildings as tenant customers refine their workplace to meet the changing appetite for modern, technology and health/hygiene driven accommodation requirements" added Mr Harrison.
