Charter Hall launches Core Plus Industrial Fund (CPIF)

08/09/2006 - PDF Version Available

CPIF and Charter Hall Diversified Property Fund (DPF) acquire $155 million industrial asset subject to 20 year lease to Coles Myer Ltd. Charter Hall Group has launched an unlisted wholesale property fund known as "Core Plus Industrial Fund" (CPIF).

CPIF and DPF have acquired a site to accommodate a new Coles Myer distribution centre adjacent to Perth Airport, with a total lettable of 72,834m2, which is to be constructed over the next 18 months. The total consideration payable by CPIF and DPF is expected to exceed $155 million and the asset is to be held 75% by CPIF and 25% by DPF. The development is being completed by a joint venture with Australand and CIP, who take construction and delivery risk.

Charter Hall Listed Property Trust (CHPT) is facilitating this acquisition on behalf of the new Core Plus Industrial Fund, which is expected to be held by wholesale investors with a co-investment by Charter Hall Property Trust, according to Joint CEO David Harrison. "The acquisition is expected to be earnings accretive for the Charter Hall Property Trust in Financial Year 2007 as progressive development payments attract an interest coupon of 8% per annum" said Mr Harrison.

"The launch of Core Plus Industrial Fund further demonstrates Charter Hall's commitment to the wholesale sector. Charter Hall Property Trust's co-investment is an opportunity to participate in the attractive distribution growth potential generated from a co-investment in Charter Hall's series of Core Plus funds"' said Mr David Harrison.

Charter Hall remains on track to deliver its FY07 forecasts.


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