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CapitaLand Investment (CLI) has purchased a freehold office within Melbourne’s CBD in its regional fund that is a core plus, CapitaLand Open End Real Estate Fund (COREF). In a study from the Australian Financial Review, the building was sold at less than $320 millions ($317 millions). CLI bought it from CBRE Investment Management, which bought the building in the year 2017 for $250 million.

COREF’s debut purchase in Australia and fourth acquisition within Asia Pacific, with total investment of around $900 millions ($1.24 billion) since the fund’s inception on August 1st of last year.

The office building, which is 22 stories tall, is situated on 120 Spencer Street, opposite the Southern Cross train station. It is a net lettable space of 344,445 square feet and has a current committed to office occupancy at 97.5%, with a weighted average lease duration that is 6.7 years. The tenant base of the property includes WeWork along with Central Queensland University.

In the last five years over the past five years, the property has seen a total of A$30 million worth of renovations, which included the recent installation of efficient mechanical and engineering equipment that is energy efficient. Since November last year the building has been operating completely on green energy.

Paul Toussaint, CLI’s managing director for Australia Paul Toussaint, CLI’s managing director for Australia, says that the is one of CLI’s main markets with a lot of potential for growth. “CLI has invested around A$1.5 billion across five high-quality assets held in the country by its listed and private funds over the past one year,” He says.

Kevin Chee, CLI’s managing director of private funds states that COREF’s entrance into Australia is in line with its plan of gaining exposure to geographic institutions-grade, income-generating assets across the developed markets of Asia Pacific.