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Charter Hall Acquires Sydney Site

Charter Hall Group (CHC) today announced its flagship industrial wholesale fund, Core Plus Industrial Fund (CPIF), has purchased a prominent seven hectare industrial site in one of Sydney’s prime industrial suburbs, Chullora. The acquisition was secured by the Group’s 50% owned national industrial developer, CIP, who will undertake development of five hectares of the site to deliver a 27,000 square metre head office, training and distribution facility for Volkswagen Group Australia. The facility will also accommodate 8,000 square metres of expansion potential. Volkswagen will lease the entire facility for an initial 13 year lease with 3.25% fixed annual rent increases. The facility will generate an enhanced yield on CPIF’s development cost that will exceed the independent valuation of 8% or $55.5 million, extending the Fund’s weighted average lease expiry from 9.7 years to 10.1 years. The remaining two hectares of land generates an income return to CPIF, who retains the right to purchase any future pre-committed development on the site. The investment will be funded from CPIF’s new non-recourse $75 million ANZ debt facility, secured for three years. Charter Hall’s Joint Managing Director, David Harrison said: “The Chullora acquisition is another example of how CIP’s robust industrial pipeline of A-grade, long lease investment opportunities is providing low risk, enhanced returns for CPIF and the Group’s other managed funds.” CPIF’s Fund Manager, Paul Ford said: “The Chullora acquisition enhances CPIF’s investment metrics and is in line with our strategy of securing industrial investments leased to high quality covenants, designed to deliver strong income and capital growth in an improving real estate market. “Securing Volkswagen Group Australia tenancy adds to the Fund’s existing high quality tenant profile, with approximately 87% of income generated by national, international or government tenancy covenants,” Mr Ford added. For further information, please contact: David Harrison Joint Managing Director Tel: +61 412 259 751 David Southon Joint Managing Director Tel: +61 418 479 155 Investor enquiries: Kylie Ramsden Head of Listed Investor Relations Charter Hall Tel: +61 2 8295 1016 Media enquiries: Rachel Mornington-West Senior Communications Manager Charter Hall Tel: +61 2 8908 4093 Charter Hall Group is a property funds management and development company, based in Sydney with offices in Melbourne, Brisbane, Perth, Adelaide and Chicago. Established in 1991 and listed on the ASX in 2005 as a stapled security under the code CHC, Charter Hall Group combines Charter Hall Limited with Charter Hall Property Trust, which will now own and/or manage over $10 billion in real estate assets. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 19 year history of managing wholesale and retail capital, making it one of Australia’s leading property fund managers. Charter Hall’s success has been underpinned by a highly skilled and motivated management team with diverse expertise across property sectors and risk-return profiles.