Core Plus Office Fund launches with $137 million Pyrmont asset
Charter Hall Group has launched an unlisted wholesale property fund known as 'Core Plus Office Fund' which has acquired 'The Atrium' office and retail development under construction in Pyrmont and is 96% pre-leased to American Express and Coles Supermarkets.
The total cost of the project upon completion in October 2006 is expected to be $137 million.
The vendor is an unlisted development fund jointly managed by Charter Hall Group and AMP Capital Investors.
The attached Investor presentation provides details of this property acquisition and product features of the unlisted Charter Hall Core Plus Fund.
'Charter Hall's listed Property Trust (CHPT) is facilitating this acquisition on behalf of the new CPOF, which will ultimately be 20% owned by CHPT', said Charter Hall joint CEO, David Harrison. 'The acquisition is expected to be marginally earnings accretive for the listed property trust in the current financial year and CPOF will crystallise fund management fee income in FY07 and subsequent years after external equity has been raised'.
'The launch of the Core Plus Office 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 anticipated from CPOF', said Mr. Harrison.
As noted in the recent Atrium lease announcement, Charter Hall will earn a substantial proportion of the total performance fee from the Atrium project in FY06.
Charter Hall confirms that the forecast performance fees for FY06 anticipated in the PDS have now been earned. Charter Hall may become entitled to further performance fees at the time properties are sold by any of the opportunity funds it manages.
Charter Hall remains on track to achieve its FY06 earnings forecast in the PDS released earlier this year.