Charter Hall acquires Harvey Norman Dunedin in multi-million dollar purchase
26/02/2007
Charter Hall's first acquisition in New Zealand brings an exciting start to its strategy to expand its overseas operations in both the development and investment markets.
The property is unique in its ability to service both retail and commercial uses and benefits fromits strong lease covenants, including Harvey Norman which provides 70% of the annual netincome until 2013 with further options. Harvey Norman is one of New Zealand's largest retailers, with Dunedin home to one of Harvey Norman's largest stores in the South Island.
The balance of the lettable area comprises of office space, predominately leased to public NZcompanies, Contact Energy and New Zealand Breweries, together with a lease to engineering firm Opus International.
The property benefits from an average weighted lease term of 6.3 years and fixed rentalincreases throughout the lease terms. The acquisition was successfully sourced off market by Neil Berryman, who was appointed as General Manager of Charter Hall's New Zealand office last year. Neil Berryman said "Dunedin has a solid catchment with a population in excess of 120,000 people. This property, with current rents below market levels and strong lease covenants, is an attractive initial investment for Charter Hall. The acquisition is in line with Charter Hall's strategy to include up to 20% of assets in NZ for its future funds".
Charter Hall's Joint Managing Director, David Harrison added "Charter Hall continues sourcinginvestment and development acquisition opportunities in New Zealand to expand the scope of our funds. Charter Hall intends to source investment and development assets throughout New Zealand to compliment the $ 2.1 billion of assets under management in Australia".