New property fund focused on consumer staples tenants a first for investors
6.89% pa* income forecast from a diversified portfolio of retail and industrial properties leased to producers and distributors of everyday consumer staples
Charter Hall Group (ASX:CHC), one of Australia’s leading property investment and funds management groups with more than $20 billion under management, today launched a new direct property investment fund focused on tenants who are the producers and distributors of everyday consumer goods.
The Charter Hall Direct Diversified Consumer Staples Fund (DCSF) forming part of the $2.9 billion Charter Hall Direct Property division, Australia’s leading manager of unlisted property funds for retail investors including high net worth, self managed super fund (SMSF) trustees and self-directed or advised investors.DCSF, which is the first consumer staples themed property fund in the Australian unlisted property fund market, has a headline forecast income yield of 6.89% pa* plus the prospect of capital growth, with distributions paid monthly.
Further, with the initial portfolio having 2.7% pa average rental increases, DCSF offers investors potential growth in income distribution and asset value. DCSF’s diversified portfolio of predominantly Australian properties leased to companies that derive their revenue from the production or distribution of consumer staples provides investors with exposure to property assets leased by major Australian and international brands with resilient income streams.
Group Executive – Global Investor Relations at Charter Hall, Richard Stacker said: “Charter Hall Direct Property has a strong track record of creating institutional grade property investment opportunities available to high net worth, SMSF members and trustees and individual investors.”
“We believe the combination of solid yield, a monthly income distribution policy, the resilience of consumer staples entities as tenants, long leases and annual rental uplifts, make the Diversified Consumer Staples Fund an attractive investment option for investors.”
The fund’s initial portfolio comprises retail and industrial properties leased to leading Australian companies including Viva Energy, Bunnings and producers and distributors of smallgoods including Hans and Primo.
“Leading consumer staples companies have operated for decades through many economic cycles. They tend to dominate the industry they operate in with high barriers of entry to new competitors. These features create a resilience to their earnings, providing an excellent tenant for landlords looking for security of cashflows from the underlying properties”.
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