Sydney-listed real estate fund manager Charter Hall Group has acquired three industrial properties in Melbourne for A$44 million ($32.7 million; €30 million).
The firm used capital from its A$1.9 billion core-plus Charter Hall Prime Industrial Fund (CPIF) to acquire the assets. The firm recently changed the funds name from the Core Plus Industrial Fund.
“There is no change to the fund's strategy of being the pre- eminent owner and manager of Australian industrial and logistics assets. The new name more closely reflects the fund's portfolio composition and investment mandate to own long lease, high quality industrial and logistics assets,” said Richard Mason, fund manager, for CPIF.
The fund has experienced a solid period of growth with CPIF returning 14.3 percent for the three years to 31 March 2016.
The three properties have a combined WALE of 16.1 years providing an increase to the fund's WALE from 7.3 years to 8 years, while also providing deferred development potential. The properties are fully leased to recycling firm Alex Fraser, a subsidiary of the Swire group of companies.
“We have actively managed our industrial portfolio through the cycle, recycling capital from non-core divestments into new assets and development opportunities. This transaction enables CPIF to add substantial future development stock to its portfolio underpinned by high quality, long term cash flow,” said Paul Ford, Charter Hall's head of industrial.
Established in 1991 Charter Hall has become one of Australia's largest property groups, with a total managed property portfolio of A$15.9 billion. The firm owns and manages 294 commercial properties around Australia, including office buildings, supermarket anchored retail centers, and a stable of industrial assets, on behalf of institutional, wholesale and retail investors.