Charter Hall’s DPF acquires a $10.65 million Melbourne industrial investment

23/04/2007 - PDF Version Available

Charter Hall Group announces that it has secured a $10.65 million portfolio of industrial leasehold investments for its Diversified Property Fund (DPF). The three modern
office/warehouse facilities are located at South Centre Road and Jets Court, Tullamarine in the new Melbourne Airport Business Park.

The new acquisitions comprise a 5,000m 2 stand alone office/warehouse building leased to Bax Global with 7 years remaining on their initial lease, and a separate facility comprising two adjoining office/warehouse properties of 2,400m 2 and 3,000m 2 leased to Jets Transport and Gibson Freight, with the portfolio having a weighted average lease term remaining of 5.7 years.

The acquisition further demonstrates Charter Hall's ability to source off market transactions, bringing the total value of the DPF portfolio of nine properties to approximately $108 million, all of which have been purchased off market. The Tullamarine assets were negotiated by Colliers International agent, Tony Iuliano.

The latest acquisition reflected an initial yield of 8.4 percent, and a capital value rate of $1,018 per square metre on a combined basis.

Located within the Melbourne airport precinct, the properties are well positioned to capitalise on major road and air transport nodes. The Melbourne Airport Business Park continues to attract blue chip national and global tenants including Caterpillar Logistics, Star Track Express and Katmandu.

Executive Director Cedric Fuchs confirmed that "DPF's portfolio provides excellent diversification, a very long WALE of approximately 11.7 years and strong rental growth prospects. The acquisition increases DPF's Victorian weighting to approximately 26 percent." The DPF portfolio comprises office, industrial and retail bulky good assets currently across NSW, VIC, QLD and WA.

Joint Managing Director David Harrison said "DPF will continue to diversify through further investment acquisitions during a strong period of support from investors and will continue to focus on growth markets across Australia and properties that enhance the funds asset, sector, tenant type and geographic diversity in the value range of approximately $5 million to $30 million."


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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