Charter Hall consolidates strategic $26 million Queensland deal

19/04/2007 - PDF Version Available

Charter Hall Group announced today, it has secured an $18.5 million off-market industrial investment for its Core Plus Industrial Fund (CPIF).The 140 Robinson Road, Geebung property in Brisbane's northern suburbs strategically adjoins the CPIF owned $7.5 million 160 Robinson Road facility, recently completed and which is leased for 10 years to Wesfarmers subsidiary, Protector Alsafe.

The new acquisition comprises a 13,000sqm industrial park and represents the sixth property for the Core Plus Industrial Fund (CPIF), bringing the total portfolio to $220 million and consolidates Charter Hall's investment within this tightly held industrial area. The acquisition further demonstrates Charter Hall's ability to source off market transactions, bringing to $26 million the size of the total Geebung estate, both of which were negotiated by Colliers International agent, Simon Bierne.

The Geebung business park is currently occupied by quality tenants including Hagemeyer, TJM and Sleepy's and provides an average lease term of 6.4 years. According to CPIF Fund Manager Paul Ford, "the business park and the immediate business precinct will benefit from imminent upgrades to the Gateway Motorway".

The latest acquisition reflected an initial yield of 7.15 percent, however Charter Hall estimates the price reflects a 7.5 percent market yield and will benefit significantly from market reviews during the next 3 years from over 80 percent of tenancies within both properties. Located 12kms from the Brisbane CBD and 3kms from the airport, Geebung is one of Brisbane's more significant established industrial areas and provides further development potential as the precinct increases office and showroom content, due to its superior infrastructure and proximity to Brisbane's CBD and airport.

Joint Managing Director David Harrison said "this acquisition supports the Fund's strategy to focus on superior locations, efficient buildings and quality covenants in high growth markets. The CPIF portfolio has now grown to $220 million with further acquisitions at an advanced stage, which will coincide with the financial close of the recent equity raising scheduled for late April 2007". Confirmation of the CPIF capital raising will be made at the end of April 2007.


This information has been prepared by Charter Hall Funds Management Limited ABN 31 082 991 786; AFSL 262861 ("CHFML") for information purposes only. This website is not an offer to sell or a solicitation or an offer to subscribe or purchase or a recommendation of any securities referred to herein and the information has not taken into account any potential investors' personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice.

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