Charter Hall Group completes $150 m wholesale equity raising
Charter Hall Group (ASX:CHC) (the ‘Group') today announced it has completed a $150 million equity raising for its Core Plus Industrial Fund (CPIF). At the full year results presentation in August 2011, the Group announced it had secured approximately $85 million of the $150 million equity target for CPIF, with the balance expected to be committed in the first quarter of 2012.
CPIF is the Group's flagship wholesale industrial fund with a portfolio of approximately $500 million of industrial distribution centres leased by major corporates including Coles, Woolworths, Volkswagen, Toll, Schenker and Smorgon Steel, and a weighted average lease term of 12 years. The Group has a $53 million co-investment (representing a 13% stake) in the Fund. Following the closing of this raising and the existing debt capacity, CPIF has the potential to grow by an additional $150 million which would make it one of the largest pure logistics wholesale funds in Australia.
Charter Hall's Joint Managing Director, David Harrison, said: 'The additional wholesale equity raised within CPIF, and the recent $200 million raised within our Core Plus Office Fund, enables Charter Hall to continue to build our capacity to source earnings and value accretive acquisitions and pre-leased developments.
'These further investment commitments from domestic and international Charter Hall wholesale clients recognise the cyclical opportunity for acquiring investment grade industrial property in a falling interest rate environment combined with strong market fundamentals from low vacancy levels, limited new supply and stable tenant demand in most metropolitan markets,' Mr Harrison said.
'CPIF utilised the initial $85 million of equity during 2010 acquiring two investment assets for a total of $135 million; the $60 million distribution facility and headquarters for Volkswagen Australia in Chullora, NSW and the $75 million Woolworths Regional Distribution Facility in Tasmania. With the additional equity commitments, we expect to secure further quality assets for our CPIF investors over the coming months,' CPIF Fund Manager, Mr Paul Ford, added.
Joint Managing Director
T: +61 8908 4033
Joint Managing Director
T: +61 8908 4025
Head of Listed Investor Relations
T: +61 2 8295 1016
Head of Marketing and Communications
T: +61 2 8908 4093