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Charter Hall raises billions for industrial fund

Charter Hall Prime Industrial Fund has secured $2.6 billion since April 2020, amid a pandemic. Group Industrial and Logistics CEO credits the strong performing and tightly held sector plus new acquisitions including its ALDI and VISY Glass portfolios.

Charter Hall Group announced that its flagship $5.8 billion Charter Hall Prime Industrial Fund (CPIF) has closed its capital raising significantly oversubscribed, having raised $2.6 billion since April 2020 in two separate raisings.

“The industrial and logistics sector continues to benefit from the rapid growth in online retailing and the focus on supply chain efficiencies. Most institutional investors are significantly underweight the industrial and logistics sector and recognise the potential growth and the attractive long-term, resilient returns available,” David Harrison, Charter Hall’s Managing Director and Group CEO said.

Charter Hall’s industrial and logistics platform now exceeds $11.5 billion with significant growth prospects. CPIF’s current $5.8 billion industrial and logistics portfolio comprises 76 assets and 2.6 million square metres of space, with 91 per cent of the portfolio by value in the key land constrained and high performing Eastern Seaboard markets of Sydney, Melbourne and Brisbane.

The total capital raising was supported by both existing and 29 new investors, comprising a mix of Australian and offshore investors including super funds, pension plans, sovereign wealth funds, insurance companies, and financial institutions from Asia, the Middle East, Europe and North America.

“Most institutional investors are significantly underweight the industrial and logistics sector and recognise the potential growth and the attractive long-term, resilient returns available. The deployment of capital remains competitive,” David said.

“Institutions recognise that by investing with Charter Hall, they can secure access to a high quality, growing portfolio of strategically located industrial and logistics assets underpinned by strong tenant covenants and long weighted average lease expiries (WALEs).”

“Whether it is through our $1 billion plus committed development pipeline or through new acquisitions via sale and leasebacks such as the recent ALDI and VISY Glass portfolios, we are providing investors with access to the strong performing and tightly held industrial and logistics sector,” Charter Hall’s Industrial & Logistics CEO, Mr Richard Stacker, said.

“We continue to leverage our local market knowledge and deep cross-sector tenant customer relationships to curate a portfolio of high quality assets with a large exposure to consumer staples and essential services, at the same time as maintaining a sector leading WALE,” Richard said.

According to the group, Investors were particularly attracted to CPIF’s high quality portfolio, its 52 per cent exposure to the consumer staples sector, the $1 billion + ‘develop to core pipeline’, and the attractive 5 year forecast total returns, underpinned by an industry leading WALE of 10.6 years, 98.0 per cent occupancy, weighted average annual rental reviews of 2.9 per cent and resilient tenant covenants with 95.0 per cent leased to government, publicly listed or nationally/globally recognised tenants.

 

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