Charter Hall’s flagship logistics fund’s ‘green’ strategy enhanced with CEFC equity investment

The CEFC today announced its first pure play investment in the industrial property sector, a $50 million equity investment in one of Australia’s largest industrial and logistics funds, Charter Hall Prime Industrial Fund (CPIF).

The $5.5 billion CPIF is one of Australia’s largest industrial and logistics funds, with 75 assets across Australia, including warehouses, industrial estates and distribution centres.

CEFC CEO Ian Learmonth said: “Working with an industry leader like Charter Hall gives us the opportunity to use our capital to help transform the industrial property sector. We can drive sustainability measures across an extensive portfolio of assets, as well as positively influence the sustainability profile of a diverse range of large tenants.

“With long-term industrial tenants looking for more sustainable property to help meet their ESG targets, the industrial property sector provides important opportunities to further decarbonise the economy.

“Australia has about 35 million square metres of industrial roof space – a largely untapped resource for energy efficiency improvements, solar PV and batteries that offers significant potential to provide clean energy as well as grid services,” Mr Learmonth said.

“This investment will also lead to the construction of new assets that make use of the latest in sustainable design and materials, potentially driving uptake of materials identified in the Federal Government’s Technology Investment Roadmap such as green steel, aluminium and cement, and delivering long term benefits to Australia’s emissions profile.”

The CPIF will consider several initiatives that go beyond the scope of the emissions target by looking to influence tenant and supply-chain emissions including:

• looking at optimised solutions in the use of solar PV panels across the 2 million sqm of roof space in its portfolio, as well its potential to be converted into a renewable energy resource to supply clean energy and grid services
• opportunities to deliver carbon neutral developments whilst also targeting a 5 Star Green Star Design and As Built rating for the $900 million strong CPIF development pipeline of projects near major infrastructure roads, rail and ports
• working with tenants to improve their sustainability outcomes and reduce energy consumption
• the role of embedded networks, batteries, as well as waste diversion strategies

Charter Hall Chief Investment Officer Sean McMahon said the CEFC investment offered the CPIF an unprecedented opportunity to implement innovative sustainability solutions across its industrial and logistics assets. “We are delighted to welcome the CEFC as an investor in our flagship industrial fund,” Mr McMahon said.

“Charter Hall is committed to continuous improvement in ESG performance across our portfolio. The CEFC investment is an endorsement of our plans to improve the operational performance of our buildings and deliver to our tenant customers a consistent high performing product.”

The CPIF will work with the CEFC to identify demonstration projects to showcase exemplar energy efficiency solutions, clean energy enabling activities as well as carbon neutral developments.

Charter Hall Chief Experience Officer Natalie Devlin added: “The CEFC is playing a key role in supporting the property industry in the delivery of innovative technologies that improve the energy profile of Australia’s built environment. The CEFC’s purpose is aligned with Charter Hall and CPIF’s sustainability strategies, which have set significant long-term emissions reduction targets for our property assets and ultimately future-proof the performance of our investments for all stakeholders.”