Change of heart by Nine buyers

Fund manager Charter Hall is reported to have changed its mind regarding the purchase of Channel Nine’s studios in Willoughby and Richmond.

The fund manager confirmed it had paid about $200 million for the two sites late last year.

According to realestatesource.com.au the global credit crunch, which has increased funding costs for the deal, has resulted in the unusual move whereby a lower price was offered for the site, during the due diligence process.

It is reported today that the offer for the Willoughby studio, on Sydney’s lower north shore is about 20 per cent less than the $100 million first negotiated for the site late last year.

It’s widely tipped Channel Nine will take the lower offer and benefit from having cash in hand.

In Melbourne, the Bendigo Street Richmond site was bought by a consortium including Charter Hall, R.Corporation and Crane Corporation. It is not yet known whether a lower offer has been offered for the Richmond site which the consortium is reported to be picking up for about $100 million.

Charter Hall was planning to turn the sites into a $1 billion residential redevelopment.

Source: realestatesource.com.au