Charter Hall enters into logistics property partnership

By a staff reporter

Charter Hall Group Ltd will join with two institutional investors to create a new vehicle which will acquire and manage core Australian logistics properties.

In a statement to the Australian Securities Exchange, Charter Hall said the new vehicle – the Core Logistics Partnership (CLP) – had already acquired two seed assets worth a collective $103.1 million.

The first asset is a logistics facility in Melbourne, which was acquired from Amcor Ltd on a 10-year sale and leaseback for $39.6 million.

The second asset is a 50 per cent tenants in common interest in the Metcash Distribution Centre at Canning Vale, Perth which was purchased for $63.5 million from the Australian Unity Diversified Property Fund.

Charter Hall joint managing director, David Harrison, said the group had been increasing its investment in industrial sector because of its strong property fundamentals.

He said Charter Hall was "pleased to be partnering with two high quality Australian institutional investors for this new, growing industrial portfolio."

"We expect to see continued acquisition opportunities across the industrial market over the next year and with the available capital, combined with debt capacity, CLP will look to grow this portfolio throughout 2013," Mr Harrison said.

"Once CLP’s current equity is fully deployed the partnership may also consider further growth beyond 2013."

Charter Hall Group has committed $14 million, which represents an approximate 5.3 per cent co-investment commitment to CLP.

The group's involvement with CLP and its seed acquisitions increased Charter Hall’s managed Australian industrial portfolio to approximately $1 billion.

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