Charter Hall Diversified Property Fund launches

Charter Hall Funds Management Limited ("CHFML") announces the launch of its new unlisted property fund, Charter Hall Diversified Property Fund ("CHDPF"), an ASIC registered managed investment scheme which has previously been referred to as CHIF 11. 

CHFML is the issuer of units in CHDPF, an open ended unlisted fund with a review in 7 years. The initial offer is being offered to the public under a Product Disclosure Statement ("PDS") opening 19 September 2005 with allotment of the initial units expected on 14 October 2005. 

CHDPF is a core property investment fund which is intended to acquire and hold stable income producing investment properties featuring attractive lease terms, annual fixed rent increases and high levels of tax deferred distributions. A broad range of investors will be targeted. CHDPF will invest in office, retail and industrial properties generally in the range of $5 million to $30 million in value. 

CHFML has secured three initial property investments to initiate CHDPF, providing a base from which CHDPF can grow. The initial offer seeks to raise an amount of $11.64 million. 

The initial properties in CHDPF are: 
%u2022 a 25% interest in 400 Kent Street, Sydney; and 
%u2022 a 100% interest in 420 Princes Highway, Corio (Geelong) VIC; and 
%u2022 a 100% interest in Lot 21, 22-28 Compark Circuit, Mulgrave (Melbourne) VIC 

The forecast distribution as outlined in the PDS for FY06 (annualised) and FY07 is 7.75% with forecast tax deferred income distributions of 97.5% in FY06 and 96.3% in FY07. The Charter Hall Group will co-invest in the fund by retaining 10% of the initial units (although it may sell down its interest to wholesale investors to meet any excess demand for initial offer units). 

The PDS for CHDPF is available above. Investors should read and consider the PDS in its entirety and consider risk factors that could affect the performance of CHDPF as described in the PDS in deciding whether to acquire units in CHDPF.