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The 2016 Professional Planner | Zenith Fund Award recognises the best talent in the Australian funds management market, and covers 19 separate categories.
Charter Hall Direct Property announced it has been awarded the 2016 Professional Planner | Zenith Fund Award for Direct Property in recognition of its market leading Direct Office Fund (DOF).
The award follows the ‘Highly Recommended’ investment rating for DOF by Zenith earlier this year. The 2016 Professional Planner | Zenith Fund Award recognises the best talent in the Australian funds management market, and covers 19 separate categories.
These prestigious awards are based on Zenith’s renowned research and analysis, and cover nine key aspects of a fund manager’s structure, processes and people.
Dugald Higgins, Zenith’s Senior Investment Analyst, said Zenith has observed Charter Hall’s development over the years into the high quality funds it represents today:
“Our strong level of conviction is underpinned by their significant experience, resources and operational skill set. This reinforces our faith in their ongoing strategy execution and ability to deliver on investment objectives. They have strong investment personnel with a robust investment process and culture demonstrable across the business. Their significant operating infrastructure across Australia, coupled with their integrated business model has made them an outstanding contender for this year’s awards.”
Nick Kelly, Head of Charter Hall Direct said that the award recognises the team effort across the Direct Property funds platform which provides investors with sector leading direct property investment opportunities.
“We are proud to be recognised as Australia’s leading direct property fund manager, managing unlisted property funds and syndicates for investors, including SMSFs and high net worth individuals, for more than 25 years.
“All of our funds have key characteristics of strong management, long average lease terms, and high quality properties in strategic markets, conservative gearing and strong tenant covenants. This is representative of the Charter Hall approach to property investing, which appealed to the judges at Zenith.”
DOF is an unlisted property fund investing in a diversified and growing portfolio of high quality Australian office properties. DOF currently comprises nine fully leased office buildings in Sydney, Melbourne, Brisbane and Perth valued at over $840 million.
Steven Bennett, DOF Fund Manager, added that investors had shown strong interest in DOF’s current round of equity raising, with the ability to accept a further $250 million from investors, which once deployed will increase the fund’s portfolio to $1.2 billion.
“DOF aims to provide investors with sustainable and stable, tax advantaged income and the potential for capital growth. The current income yield for the fund is 6.6%1 per annum, an attractive offer in an environment with lower prospective income returns from cash, fixed interest and bonds.
“This award recognises the active management of the DOF portfolio, recycling capital from non-core divestments into new assets and development opportunities. This approach has improved the qualityand size of the portfolio ensuring that we create value for our capital partners and tenant customers.”
Mr Bennett added. DOF achieved a total return of 20.1%2 per annum in the 12 months to June 30, 2016. This compares to the benchmark (MSCI/IPD Australian Unlisted Wholesale Property Fund Index) return of 12.8% over the same period.
Charter Hall's Direct Property business continues to deliver market leading returns for investors. During the past twelve months its funds consistently held up to five of the top 10 ranked positions in the Property Council/IPD Unlisted Core Retail Property Fund Index.
1 Yield based on the forecast September 2016 quarter distribution(annualised) of 7.75 cents per unit and the unit price of $1.17 asat 26 August 2016. Distributions for future quarters may vary.
2 Refers to Wholesale A Units.
Disclaimer: The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 7,2016 and are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only.