A new wholesale partnership (CHPIP) between Charter Hall Group and global institutional investor PGGM, manages pension assets worth €246 billion and is based in the Netherlands, has secured a fourth investment to bring the portfolio value to $300 million in recent months.
The new CHPIP partnership is targeting a combination of core land rich investments and selective stabilised assets together with brownfield and value add opportunities including develop to core strategies.
The most recent acquisition, a prime industrial investment in Melbourne, is a 20 year sale and lease back at a price of $87 million. This adds to the recently settled $207 million Minto acquisition in Sydney which was acquired in a 50/50 JV with Charter Hall’s $6 billion Charter Hall Prime Industrial Fund (CPIF). A further acquisition in Kingsgrove, Sydney together with several long-leased assets to Ingham’s have been completed in recent times. These acquisitions provide the new CHPIP partnership with a portfolio of seven assets and an attractive 13 year WALE.
“We have cultivated an excellent relationship with PGGM over a number of years and this has culminated in the creation of this new logistics partnership. We are well underway in building a nationally diversified logistics portfolio. Charter Hall is using its deep access to deal flow and will use its in-house development skills to add value to brownfield investments such as Minto,” said Sean McMahon, Charter Hall Group’s CIO.
”The industrial and logistics sector is undergoing a long-term structural upcycle driven by significant growth in online retailing and the need for on-going supply chain efficiencies.”
“The industrial and logistics sector is undergoing a long-term structural upcycle driven by significant growth in online retailing and the need for on-going supply chain efficiencies. Most institutional investors are significantly underweight within the industrial and logistics sector and wish to increase their exposure to the strongly performing sector. Consequently, those groups with a capacity to source acquisitions on and off market, a develop to core capability and most importantly, possess the scale to meet tenant customer needs across multiple geographies and sectors, will be able to deliver the outcomes our investors seek in a highly competitive market,” said Mr David Harrison, Charter Hall Group’s Managing Director and CEO.
PGGM’s Senior Director APAC, Ronald Bausch commented “PGGM is pleased to be building this new partnership with Charter Hall in the Australian logistics sector and the team have made very good progress in securing $300 million of assets to date and we are busy looking at new opportunities that fit with the mandate. Australian logistics remains an attractive relative investment and we look forward to building a scale relationship with Charter Hall.”