Leading Australia based commercial property fund manager, Charter Hall Group has offered its market leading unlisted Direct Office Fund (DOF) to New Zealand investors for the first time. DOF is looking to accept a further $AUD250 million from investors in a new round of equity raising.
Charter Hall head of Direct Property, Nick Kelly said: “In response to the demand from New Zealanders to invest in Australian investment grade commercial property we have, for the first time, formally entered this investment market by registering our current direct unlisted property funds, in New Zealand.
“New Zealand residents can now invest with Charter Hall in New Zealand dollars and they can also receive dividends in New Zealand dollars. With the New Zealand dollar at near parity with the Aussie – the best rate in living memory – it’s an especially attractive time for New Zealanders to invest in blue chip Australian commercial property.”
“As Australia’s largest specialist investment property manager with more than $AUD17.5 billion under management, Charter Hall Group has a strong track record of New Zealand investors participating in its funds historically,” he added.
DOF currently comprises nine fully leased office buildings in Sydney, Melbourne, Brisbane and Perth valued at over $AUD842 million. The fund aims to provide investors with sustainable and stable, tax advantaged income and the potential for capital growth. The current distribution yield for the fund is 6.6%¹ per annum, an attractive offer in an environment with lower prospective income returns from other asset classes, particularly cash, fixed interest and bonds.
“With strong investor demand and Charter Hall’s ability to access a pipeline of high quality, well located Australian office property, the fund is targeting to grow its office property portfolio to over $AUD1.2 billion.
“DOF achieved a total return of 20.1% per annum in the 12 months to June 30, 2016. This compares to the benchmark (MSCI/IPD Australian Unlisted Wholesale Property Fund Index) return of 12.8% per annum over the same period.
“DOF has provided investors with annualised distributions of 7.5 cents (AUD) per unit paid quarterly plus strong capital growth to date, which is forecast to grow to an annualised 7.75 cents (AUD) per unit for the year ending June 30, 2017.
New Zealand investors can invest in DOF via their financial adviser or directly with Charter Hall via the website, www.charterhalldirect.com.au
“DOF is a flagship fund for the Charter Hall Direct business. Its key characteristics of long average lease terms, high quality tenants, quality locations, and conservative gearing, is representative of our approach to property investing,” Mr. Kelly said.
Property Industry Research group (PIR) has ranked Charter Hall as Australia’s largest manager of direct property funds for retail investors and self-managed super funds in Australia, with more than
$2.5 billion funds under management, and has three of top 10 performing funds in the Property Council of Australia’s latest unlisted retail sector index as complied by IPD/MSCI.
About Charter Hall
Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 25 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $17.5 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.
For further information, please contact:
T: +61 2 9967 8894
Corporate Communications Manager
T: +61 2 8651 9223
¹ DOF’s yield based on the forecast September 2016 quarter distribution (annualised) of 7.75 cents per unit and the unit price of $1.17 as at 26 August 2016. Distributions for future quarters may vary