Charter Hall Office Fund now open to NZ investors

Australia’s #1 Commercial Property Office Fund now open to NZ investors

$NZ/AUD exchange rate “best in living memory”- an added attraction

19 September 2016

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.

ends

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