Charter Hall\'s Core Plus Industrial Fund makes strategic Brisbane acquisition for $21.2 million

11/12/2007 - PDF Version Available

Charter Hall, one of Australia's leading property fund managers and property developers, announces that its Core Plus Industrial Fund (CPIF) has acquired off market the Citiport Industrial Estate in Meeandah, Brisbane for $21.2 million.

The acquisition is CPIF's 10th asset bringing its total portfolio value to approximately $325 million with a strong WALE of 12.75 years and further capacity to grow the Fund to $700 million.

Citiport Industrial Estate is located 9 kilometres north-east of the Brisbane CBD and is adjacent to Brisbane Airport in the heart of the Australia TradeCoast precinct. South-east Queensland is Australia's fastest growing region with Brisbane alone having an average annual growth in population of 2.2% over the past 5 years. Projections by the ABS indicate that Queensland by 2031, will overtake Victoria as the second largest state, with the population expected to rise to 6.5 million. It is expected the proposed infrastructure upgrades and the forecasted population increase will underpin growth rates in both land values and rents.

The Australia TradeCoast precinct is soon to benefit from the largest road and bridge infrastructure project in Queensland's history. The Gateway Upgrade Project is expected to be completed in mid 2011. The upgrade will further improve the location's access to both north and south transport routes by providing two immediate access points to the Gateway Motorway.

Citiport Industrial Estate is a strategically located corner site offering significant exposure to Sugarmill Road and Kingsford Smith Drive. The Estate comprises seven office/warehouse units totalling 14,257m2 ranging in size from 347mē to 4,561mē with a low site coverage of approximately 45%. It has a total area of 3.1685 hectares with the potential to be subdivided into individual land and building sites. In addition, there is additional scope to further increase GLA.

The Estate is 100% occupied with a staggered lease expiry profile and includes quality tenants such as Mayvik, Brisbane Council, BP Australia, Glen Cameron Group and Enerflex.

David Harrison, Charter Hall's Joint Managing Director said: "The Meeandah acquisition reflects our confidence in the Brisbane industrial market and further diversifies the portfolio with rental reversion opportunities to be exploited in coming years with current passing rentals approximately
20% below market".

Paul Ford, CPIF's Fund Manager said: "The acquisition is likely to provide opportunities to increase GLA and/or sell down buildings over time to the strong owner occupier market providing enhanced returns for investors".

The transaction was negotiated by Peter Turnbull and Greg Russell of Knight Frank in Brisbane.


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.

CHFML does not receive fees in respect of the general financial product advice it may provide, however they will receive fees for operating the schemes of which it is the responsible entity ("Schemes") which, in accordance with the Schemes' Constitutions, are calculated by reference to the value of the assets of the Schemes. Entities within the Charter Hall Group may also receive fees for managing the assets of, and providing resources to the Schemes. For more detail on fees, see our latest annual report. To contact us, call 1300 365 585 (local call cost).