Charter Hall builds new relationships
06/10/2006 - PDF Version Available
Charter Hall Group (CHC) announces that it has secured the right to invest in another joint venture with Pivot Group and potential future deal flow. A strategic equity alliance has been entered into with Pivot Group by Charter Hall which has resulted in the Pivot Group granting Charter Hall a right to participate in further Pivot projects, which may occur in joint venture with Axiom. Further details of the initial project will be released once confidentiality obligations have been satisfied.
In a further extension of its relationship with Pivot Group, Charter Hall has also acquired a $5 million stake in Axiom Properties Limited, representing approximately 5% of Axiom's issued capital. Pivot is a major shareholder in Axiom. Axiom is a publicly listed property development company which currently has 2 major projects in WA:
- Axiom owns a 40% interest in a marina/canal subdivision at Port Geographe, north of Busselton. Of the 621 lots, 121 lots in Stage 1, worth $50 million, were sold on the first day of the release in early 2006. The project life is expected to extend over 5 – 6 years. The project's remaining 60% interest is held by Macquarie Bank and Saracen Properties.
- Axiom has also secured a 50% profit share of a 28,000mē A-grade office development at 100 St Georges Terrace Perth, being developed with Pivot's development partners, ISPT.
- Charter Hall Joint CEO, David Harrison said "The Pivot Group alliance and the associated Axiom investment represents an equity based alliance delivering further access to Pivot Group's projects and deal flow, which has exceeded over $1 billion over 30 years of property development throughout Australia".
Joint CEO, David Southon, further noted that "Charter Hall places a high value on the relationship with Pivot having sourced 3 projects in the past 2 years and we look forward to forging an even stronger alliance in the future".
