Charter Hall raises A$2.6bn for industrial fund

Charter Hall raises A$2.6bn for industrial fund
Image: Courtesy of Charter Hall

Australian fund manager Charter Hall announced that it has raised A$2.6 billion of equity commitments since April 2020 for its Charter Hall Prime Industrial Fund (CPIF).

Charter Hall said the 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.

“The Group is delighted with the strong level of support we have received despite the economic uncertainty caused by COVID-19. It demonstrates the quality and resilience of the CPIF portfolio and Charter Hall’s reputation, amongst domestic and global investors, as a leading player in the Australian industrial and logistics market,” said David Harrison, Charter Hall’s Managing Director and Group CEO.

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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. The deployment of capital remains competitive. Charter Hall’s industrial and logistics platform now exceeds $11.5 billion with significant growth prospects. 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)” said Mr Harrison.

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“The capital raising gives the fund the capacity to grow to in excess of $8 billion whilst maintaining gearing below its targeted 30% level, cementing its position as Australia’s largest unlisted property fund focussed on the pure play industrial and logistics sector” he added.

Charter Hall Prime Industrial Fund has currently $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.

“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,” said Richard Stacker, Charter Hall’s Industrial & Logistics CEO.