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Charter Hall launches industrial investment fund

Sydney-based real estate fund manager, Charter Hall, has launched an Australian industrial real estate investment fund with the purpose of acquiring up to A$200m of assets.


Charter Hall, the Sydney-based real estate fund manager, has added to its investment funds with the launch of an industrial investment fund.

In a statement on the fund launch, the firm, which manages a raft of different vehicles including REITs and retail investor funds, said it was using the fund to address current investor preferences for exposure to low volatility and stable income unlisted property.

The Charter Hall Direct Industrial Fund will be launched by Charter Hall division Charter Hall Direct Property, which managed about A$1.2 billion (€830 million; $1.1 billion) of real estate assets across the real estate sectors as of 30 June.

The firm is seeking to attract $30 million in investment capital before the end of September. The minimum possible investor commitment is A$10,000.

The seven-year fund is closed-ended and is targeting returns of 8.7 percent a year to its initial investors. The vehicle will be used to acquire existing industrial assets close to major transport routes but can also be used to purchase developments.

It has already purchased its first investment, an asset in Melbourne leased to Toll Holdings and valued at A$24.4 million. The asset was purchased from industrial developer CIP, in which Charter Hall owns a 50 percent stake. The firm aims to acquire up to A$200 million of assets in total via the vehcile in both on and off-market deals.

Charter Hall, which manages more than A$10 billion of assets, is also currently seeking capital commitments to its Charter Hall Special Situations Office Fund. The firm plans to raise between A$200 million and A$400 million for the vehicle which will aim for more opportunistic returns of more than 15 percent net of fees.