News: Challenger buys $81M Melbourne property

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Challenger Diversified Property Group (ASX:CDI) has announced that it has bought an office building in central Melbourne for $81 million.



The property group says it will use existing debt capacity to fund the purchase, with settlement expected on 2 April this year.



The office building is located in Queen St, in Melbourne’s CBD, with 27 levels comprising of19,213 square meters of net lettable area.



Challenger fund manager Trevor Hardie says the purchase will enhance Challenger’s portfolio by providing Melbourne CBD exposure, lifting asset quality and supporting diversification of income.



In the first half of its 2011 financial year Challenger Diversified Property Group reported a net profit of $30 million.