Charter Hall Group acquires $140m of Assets and underwrites a New Retail Syndicateright-arrow
read-time3 mins
by Charter Hall Announcements

To access this part of the website, please select your country of residence from the following list.

The country of my primary residence is:

Due to legal restrictions, access to this website is only available to residents of Australia and New Zealand from within Australia or New Zealand. In order to access this website, you must provide the State, Territory or Province and postcode for your primary residential address within Australia or New Zealand.

The State or Territory of my primary residence in Australia or the Province of my primary residence in New Zealand is:

Due to legal restrictions, access to this website is only available to residents of Australia and New Zealand from within Australia or New Zealand. In order to access this website, you must provide the State, Territory or Province and postcode for your primary residential address within Australia or New Zealand.

The State or Territory of my primary residence in Australia or the Province of my primary residence in New Zealand is:

By proceeding you confirm that you are a resident of Australia or New Zealand accessing this website from within Australia or New Zealand and you represent, warrant and agree that:

  • you are not in the United States or a “U.S. person”, as defined in Regulation S under the U.S. Securities Act of 1933, as amended (“U.S. Person”), nor are you acting for the account or benefit of a U.S. Person;
  • you will not make a copy of the documents on this website available to, or distribute a copy of such documents to, or for the account or benefit of, any U.S. Person or any person in any other place in which, or to any other person to whom, it would be unlawful to do so; and
  • the state, territory or province and postcode provided by you below for your primary residence in Australia or New Zealand are true and accurate.

I agree to the above terms Yes or No.

Unfortunately, legal restrictions prevent us from allowing you access to this website. If you have any questions, please contact us by e-mail by clicking on the link below.

Contact Us

 

Charter Hall Group (ASX:CHC) (Charter Hall or the Charter Hall Group) today announced a multi-asset transaction with Australia’s largest automotive retailer, the ASX listed Automotive Holdings Group (ASX:AHG).

Extending the Group’s focus on partnering with high quality tenants that enjoy strong market share within their sector, Charter Hall has acquired three high profile retail properties to seed a new $100 million retail syndicate. The syndicate has been underwritten by the Group and a Product Disclosure Statement will be registered for the retail equity raising.

The new syndicate, called Charter Hall Direct Automotive Trust (DAT) will, upon settlement on 30 September 2015, own three retail assets summarised below:

 

Property

Price

Gross Lettable Area

Lease Term

Castle Hill, NSW

$65.5 million

12,419sqm

12 Years

Kirrawee, NSW

$24.8 million

3,772sqm

15 Years

Brisbane, Qld

$12.0 million

2,715sqm

15 Years

 

The Kirrawee and Brisbane properties were acquired from AHG, and the Castle Hill property was acquired from an API managed syndicate established in 2012. 

In a further extension of the relationship with AHG, the Charter Hall managed wholesale industrial fund has acquired an industrial site from AHG at Prestons in Sydney for $13,755,000, subject to a 15 year pre-lease. The land is to be developed into the AHG East Coast head office and distribution facility  and, upon completion in mid-2016, has a forecast development cost of approximately $43 million. 

All AHG sale and leaseback properties have annual rent reviews of CPI +0.5% and lease terms reflective of modern single tenant assets. 

Once finalised, the DAT syndicate will increase the Charter Hall Direct business FUM to $1.9 billion benefitting from a weighted average lease expiry (WALE) of 9.5 years across its suite of long-leased portfolios,  said Richard Stacker, Head of Charter Hall’s Direct Property business.

 

Charter Hall’s Head of Wholesale Funds, Adrian Taylor said:

 

"Upon completion of the Prestons development and recent acquisitions, CPIF will increase its portfolio to $1.25 billion with a WALE of 8 years, whilst the Group’s managed industrial platform now exceeds $3 billion.” 

 

AHG Managing Director Bronte Howson said:

 

“The transaction is part of our normal capital management strategy to maintain capacity in our balance sheet to fund growth opportunities. It creates a partnership between AHG and Charter Hall, an institutional property manager which provides the scale and access to equity, and which allows us to look at future opportunities across our automotive dealership and logistics businesses.” 

 

Charter Hall’s Joint Managing Director, David Harrison said:

 

"We are excited about forging a relationship with another high quality ASX listed group and hope that the AHG relationship will develop our mutual interests across the retail and industrial sectors. Charter Hall continues to drive momentum in its investment themes, including long WALE industrial and retail assets leased to quality tenant customers providing resilience and certain rental growth".