Planning for your future starts now.
Diversification, regular income, strong returns… if you’re interested in building wealth, consider investing with Australia’s leading direct property fund manager.
Taking control of your financial future is an exciting step. You may have invested before, or be new to creating wealth. Either way, an investment in direct property could be a good option to get that secure future started right now.
Investment in unlisted direct property funds can be a cornerstone in a balanced portfolio, giving you diversification, access to a stable income and returns that have a low correlation to listed investments.
Charter Hall Direct has funds that invest in high quality, long leased commercial property that are open now for investments of $20K and above.
Interested in finding out more? Contact our team and let’s help you get started.
Our funds provide an opportunity to include commercial property in your investment mix.
Unlisted direct property investing is an investment in commercial property – that includes office, industrial, retail or social infrastructure property - via a direct or unlisted property fund.
Investing in commercial property can complement other asset classes in your investment portfolio. At Charter Hall, creating and managing these types of investments is our speciality.
Our funds feature quality properties on long-term leases and deliver sustainable and stable returns with the potential for capital growth. They’re the types of investment favoured by large institutions, like super funds, that you can also have access to.
The fundamentals of investing in Direct Property.
Hear from Steven Bennett, Direct CEO at Charter Hall, about the importance of commercial property in your investment portfolio.
Commercial property investment basics
What is commercial property investment?
Direct funds or listed real estate investment trusts (REITs) often provide access to high quality commercial properties in diversified portfolios. You can invest as an individual, through a self-managed super fund (SMSF) or through other entities
such as companies or trusts.
Common commercial property types include:
- Office: Office property can include anything from one or two-storey blocks to iconic CBD towers. Tenants may be private businesses or government agencies.
- Industrial: We use the term ‘industrial’ to cover warehouses, manufacturing plants and logistics facilities. Distribution centres have become popular with the rise of e-commerce websites creating greater demand for storage and freight.
- Retail: Retail property is some of the most recognisable commercial property. It includes bricks and mortar stores, shopping centres and retail centres like Bunnings.
- Social infrastructure: Much of our social infrastructure is privately owned and make for potential investment opportunities. Early learning centres and healthcare assets are two examples.
Important commercial property jargon
Before we proceed, these are some of the important commercial property terms will be helpful to understand when considering investing in commercial real estate.
- WALE (weighted average lease expiry): In a property with two or more tenants, WALE refers to the average lease expiry between them. A high WALE means tenants, on average, will remain in the building for some time, while a low WALE is of course the opposite. The ‘weight’ of a WALE calculation may be based on the amount of floor space a tenant occupies, or the income they are generating. So in a retail centre with one massive supermarket and 10 small stores, the supermarket’s lease will affect the WALE more than any individual shop as it is both larger and pays higher rent.
- Occupancy: Occupancy refers to whether the building has tenants, and how much of the building is occupied. It is measured as a percentage of occupied floor space to total space in the property. Commercial property performance is heavily reliant on high levels of occupancy.
- Capitalisation rate: The capitalisation rate, also known as cap rate, is a calculation comparing the income generated from a property with the value of the property.
- Tax deferred: If you see something as being ‘tax deferred’ or known as a ‘tax-deferred scenario/scheme’, this refers to the possibility of paying tax in a different year to the one in which income is distributed.
- Direct property fund: A direct property fund is a managed investment scheme where multiple investors’ money is pooled together to purchase property assets. Ownership is shared between investors based on their investment portion, but the actual investment is determined by the fund manager.
- Listed property fund: A listed property fund is a commercial property or portfolio of properties listed on the Australian share market (ASX). These are also known as Australian real estate investment trusts (A-REITs). Like direct funds, A-REIT investments are made by a fund manager with pooled-together finances from investors.
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Interested in adding commercial property to your investment mix? Plan for your future.
With decades of experience and a history of success, we’ve become one of Australia’s leading property groups.
If you’re interested in the benefits of adding a direct property fund to your portfolio, or have any questions, contact our team.
Past performance is not a reliable indicator of future performance.
This website is not intended to be and does not constitute a Product Disclosure Statement or disclosure document as those terms are defined in the Corporations Act 2001 (Cth). It does not constitute an offer for the issue sale or purchase of any securities
or any recommendation in relation to investing in any asset. This website has been prepared without taking account of any particular investor's objectives financial situation or needs. While every care has been taken in the preparation of this website,
Charter Hall Direct Property Management Limited (ACN 56 073 623 784, AFSL 226849 (CHDPML) does not make any representation or warranty as to the accuracy or completeness of any statement in it, including without limitation any forecasts or opinions,
and persons viewing this website should conduct their own inquiries and investigations. Forecasts, opinions and estimates provided on this website are based on assumptions, contingencies and market conditions which are subject to change without notice,
and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and should not be relied upon as an indication of future performance. The information on this website is subject to change,
and CHDPML is not responsible for providing updated information to any person. To the maximum extent permitted by law CHDPML disclaims all liability for any loss or damage which may arise out of the provision to or by any person of the information
contained on this website.
Australia’s leading direct property fund manager based on Funds Under Management (FUM) from the Core Property – Australian Unlisted Property Funds Report, January 2020.
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