CHARTER Hall Group's Core Plus Industrial Fund has completed a $150 million equity raising after initially securing $85 million in August last year.
CPIF has a portfolio of approximately $500 million leased by major corporates including Coles, Woolworths, Volkswagen, Toll, Schenker and Smorgon Steel, and a weighted average lease term of 12 years.
CHC has a $53 million co-investment (representing a 13% stake) in the fund.
Following capital raising, CPIF has the potential to grow by an additional $150 million which would make it one of the largest pure logistics wholesale funds in Australia.
CHC’s joint managing director David Harrison said these further investment commitments shows wholesale clients recognise the cyclical opportunity for acquiring investment grade industrial property in a falling interest rate environment combined with strong market fundamentals from low vacancy levels, limited new supply and stable tenant demand in most metropolitan markets.
“CPIF utilised the initial $85 million of equity during 2010 acquiring two investment assets for a total of $135 million; the $60 million distribution facility and headquarters for Volkswagen Australia in Chullora, NSW and the $75 million Woolworths Regional Distribution Facility in Tasmania.
“With the additional equity commitments, we expect to secure further quality assets for our CPIF investors over the coming months,” CPIF fund manager Paul Ford said.
PropertyReview
