Charter Hall secures new capital partnership with Tokyo Tatemono and UBS Asset Management

Charter Hall Group is pleased to announce it has established a new investment partnership with Tokyo Tatemono Co. and UBS Asset Management, on behalf of their clients, for a portfolio of high-quality Industrial & Logistics assets across Australia’s east coast with an end value of $1.2 billion.

The portfolio comprises three Sydney assets, two Brisbane assets and a strategic 20-hectare infill development site in Melbourne’s tightly held Dandenong precinct. The assets are predominantly leased to leading consumer staples customers, including Coles, ALDI and Coca-Cola, and the portfolio provides resilient income underpinned by strong covenants and exposure to Australia’s essential consumer supply chains.

The transaction represents Tokyo Tatemono’s first investment with Charter Hall and its first exposure to Australia’s Industrial & Logistics sector.

David Harrison, Managing Director & Group CEO of Charter Hall said, “This partnership reflects the scale of our platform, our ability to source high-quality opportunities and our focus on creating strategic outcomes for our investor partners.  

Investors continue to back Australian real estate, and Charter Hall is well positioned to meet that demand. Charter Hall was ranked 14th globally in the inaugural PERE Core 100, making us the highest-ranked Australian real estate manager and the only Australian manager ranked in the top 25. The ranking reflects the confidence global investors place in our platform and investment capabilities.

We welcome Tokyo Tatemono as a new capital partner. As one of Japan’s leading real estate groups, Tokyo Tatemono brings a highly aligned, long-term investment approach and shares our conviction in the Australian logistics sector.

The sector continues to be supported by strong long-term fundamentals, including population growth and increasing demand for modern supply chain infrastructure.”

Fumio Tajima, Managing Executive Officer – Overseas Business Division Director, Tokyo Tatemono said: “Australia’s Industrial & Logistics sector presents a compelling investment opportunity, supported by attractive market fundamentals, resilient occupier demand and long-term growth drivers.

Charter Hall’s market-leading platform, deep local expertise and proven investment track record made this portfolio an attractive entry point for Tokyo Tatemono’s first investment in the sector.

We look forward to partnering with Charter Hall and UBS Asset Management and building a long-term relationship as we grow our exposure to the sector.”

The transaction also extends Charter Hall’s longstanding relationship with UBS. Following previous investment across Charter Hall’s wholesale pooled funds, it marks UBS Asset Management’s first direct partnership with Charter Hall in the Industrial & Logistics sector.

Richard Stacker, Industrial & Logistics CEO of Charter Hall added, "We value our longstanding relationship with UBS Asset Management and are pleased to extend it into this first direct Industrial & Logistics partnership. Together with Tokyo Tatemono, we have assembled a portfolio that reflects our partnership-led approach and our focus on delivering sustainable, long-term value for investors.

Following the success of our recently announced partnership with a major domestic capital partner, which has grown to approximately $650 million through off-market Industrial & Logistics acquisitions, this transaction demonstrates continued demand from domestic and offshore capital for high-quality Australian logistics real estate.”

Charter Hall's Industrial & Logistics platform is now valued at $24.9 billion.