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News release

New York, NY

Jones Lang LaSalle Closes $275 Million Secured Credit Facility for Charter Hall Office REIT

Debt facility includes $190M five-year term loan and $85M revolver facility for five US assets


NEW YORK, June 6, 2011 —  Jones Lang LaSalle today announced the firm’s Capital Markets experts have closed a $275 million secured credit facility on behalf of Charter Hall Office REIT.  The debt facility includes a $190 million five-year term loan for five of the REITs United States assets, as well as an undrawn $85 million revolver facility to fund leasing-related expenditures at those properties. 

The facility is secured by 745 Atlantic Avenue in Boston; One & Three Christina Center in Delaware; Pasadena Towers in Pasadena; Promenade II in Atlanta; and SunTrust Financial Centre in Tampa.

Leading the Jones Lang LaSalle team on this transaction was Managing Director Paul House, Executive Vice President Matt Comfort and Senior Vice President Reid McGlamery.  

“These properties were extremely appealing to lenders as they are comprised of a diverse, high-quality tenant base and are located in strategic markets that benefit from strong regional economies.” said Comfort. “The steady cash flow generated by the portfolio, coupled with exceptional sponsorship, made this an attractive financing opportunity.”

The completion of the debt facility accomplishes a number of important objectives for the REIT including:

• Refinancing the 2011 loan maturities at One & Three Christina Center and 745 Atlantic Avenue, without the need for any equity injection.

• Enhancing the REIT’s liquidity position through:

- The undrawn $85 million revolver facility; and

- Releasing approximately $88 million of net proceeds to the REIT (after the repayment of the One & Three Christina Center and 745 Atlantic Avenue loans).
• An increase in the overall United States weighted average debt maturity from 3.3 years to 3.9 years.

• A reduction in the average drawn all-in-cost for the U.S. debt facilities to approximately 5.2 percent from 5.6 percent as of December 31, 2010.

• All of the REIT’s assets are now financed in their local jurisdiction which also increases the natural capital hedged.

Charter Hall Office REIT Chief Executive Officer, Mr. Adrian Taylor, said, “We are pleased to have closed this finance facility which provides significant benefits for the REITs operations.  The facility enhanced our capital position and access to the revolver facility ensures these five properties remain competitively positioned in the leasing market.”

In 2010, Jones Lang LaSalle’s Capital Markets solidified its position as the market leader in real estate investment banking, closing more than $8 billion in debt and equity financings, note sales and advisory transactions, including nearly $4.5 billion in note sales alone due to the efforts of the Special Asset Services group.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. Our in-depth local market and global investor knowledge delivers the best-in-class solutions for our clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2010 alone, Jones Lang LaSalle Capital Markets completed $43 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $33 billion in global investment sales and buy-side transactions, equating to nearly $140 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its office broker volumes by 257 percent in 2010 and is quickly gaining market share across all property types. The firm’s Capital Markets team comprises approximately 800 specialists, operating in 185 major markets worldwide.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $43 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.