Charter Hall grows CCRF by $360m to $3 billion

Charter Hall Group (Charter Hall or the Group) today announced that its unlisted institutional fund the Charter Hall Convenience Retail Fund (CCRF or the Fund) has acquired a portfolio of three high-quality metro-located shopping centres for a combined value of $360 million at a forecast year one yield of 5.74%. CCRF’s growing portfolio now has a total of 35 non-discretionary convenience retail assets, bringing its gross asset value to more than $3 billion, with significant further capacity to expand.

The portfolio comprises three sub-regional convenience-based assets across the major Eastern Seaboard metropolitan markets of Sydney, Brisbane and Melbourne, located in the densely populated catchments of Bonnyrigg, Morayfield and Summer Hill, respectively.

The 100% occupied portfolio is anchored by strong-performing major tenants including Coles, Woolworths, ALDI, Kmart and Big W.

Each asset benefits from substantial landholdings with low site coverage of approximately 35% with “land rich” underlying land values, providing potential to unlock additional income streams and capital growth through active asset management and leasing.

Following this transaction, CCRF’s major tenant income accounts for almost 50% of the total portfolio net property income (NPI), supported by the Fund’s exposure to 11 metropolitan Bunnings assets on double net leases with fixed rental escalations and market reviews at options. The blend of high-quality Coles, Woolworths and Aldi anchored shopping centres and net leased metropolitan Bunnings assets has attracted significant institutional investor interest since launch in July 2025.

Charter Hall Retail CEO Ben Ellis commented, “We’re pleased to have delivered another high-quality off-market acquisition for CCRF investors, drawing on the scale and expertise of the Charter Hall platform. As the leading owner of convenience retail in Australia with over $17 billion of assets and a fully integrated platform that does not outsource its services, we are seeing an acceleration of investor interest right across our Retail platform.

“Limited new supply of retail assets, coupled with Australia’s population growth will continue to drive increasing sales productivity of our tenants driving income growth. Our market leading tenant customer NPS scores also highlight that a collaborative approach generates value for both tenants and our investors.”

Charter Hall CCRF Fund Manager Yvette Keatings, also commented, “This transaction is directly in line with CCRF’s strategy of acquiring strong performing convenience-based assets in metropolitan locations on large landholdings, underpinned by predominantly non-discretionary usages. With high-performing anchor tenants and a favourable income growth profile, these assets provide significant potential to unlock additional capital growth through active asset management.”

JLL's Sam Hatcher and Nick Willis acted as brokers on this off-market transaction.