Charter Hall Group announced today that its flagship A$5.8bn Charter Hall Prime Industrial Fund has closed its latest capital raising round. The company reported that the raising had been significantly oversubscribed with the total raised by the fund since April 2020 growing to A$2.6bn.
The capital raising included 29 new investors to the fund. Both Australian and offshore investors were involved and the list included super funds, pension plans, sovereign wealth funds, insurance companies, and financial institutions from Asia, the Middle East, Europe and North America.
Charter Hall’s Managing Director and Group CEO, Mr. David Harrison spoke of his delight with the strong level of support received despite the economic uncertainty caused by COVID-19 and put it down to the quality and resilience of the CPIF portfolio and Charter Hall’s reputation as a leading player in the Australian industrial and logistics market.
Giving his views on the outlook for the industrial and logistics market, Mr. Harrison said, “The industrial and logistics sector continues to benefit from the rapid growth in online retailing and the focus on supply chain efficiencies. Most institutional investors are significantly underweight the industrial and logistics sector and recognise the potential growth and the attractive long-term, resilient returns available.”
The fund plans to use the newly raised funds to make new acquisitions and to and has earmarked over A$1bn for its ‘develop to core pipeline’.
“The capital raising gives the Fund the capacity to grow to in excess of A$8bn whilst maintaining gearing below its targeted 30% level, cementing its position as Australia’s largest unlisted property fund focussed on the pure play industrial and logistics sector,” said Mr. Harrison.
CPIF’s current A$5.8bn industrial and logistics portfolio comprises 76 assets and 2.6m square metres of space, with 91% of the portfolio in Sydney, Melbourne and Brisbane.
While 2020 has been tough for several other property sectors, industrial logistics has had a strong year, driven by the rapid growth in online shopping and the need for companies to diversify and secure supply chains.
While the MCSI Mercer Australian Core Property Fund index is down 3.4 per cent in the 12 months to 30 September, the logistics focused CPIF has delivered annualised total returns of 11.1%.