7.25% forecast yield + potential for capital growth
Charter Hall Group’s (Charter Hall or the Group) Direct Property business today launched a second automotive retail property trust seeking to raise $48 million in equity to acquire an $82 million property portfolio with a 13 year weighted average lease expiry (WALE). The Trust has acquired four properties (the portfolio) in Sydney, Melbourne, Brisbane and Perth.
The Charter Hall Direct Automotive Trust No 2 (DAT2) follows the successful completion of the DAT1 equity raising, launched in August 2015, and which closed to new investment within 6 weeks of settlement of the property transaction on 30 September 2015. The assets have all been 100% leased by Automotive Holdings Group (ASX:AHG) on long term leases, whilst equity commitments are expected from retail, high net worth and self managed superannuation fund investors.
DAT2 will comprise a portfolio of well located established and new automotive dealerships, 100% leased to AHG and will offer an attractive and stable earnings stream. The Trust will have an initial distribution of 7.25% for years one and two and the prospect of capital growth over the six year initial period of the trust.
Charter Hall’s Head of Direct Property, Nick Kelly explained that the DAT series is an example of the Group’s ability to originate new funds that deliver strong returns to investors and follows the successful series of industrial property funds known as DIF1,2 and 3 all over subscribed since launch in 2010.
Please view the attached media release for more information , and also attached is image of Toyota dealership in Balcatta, WA.