Charter Hall Pads Out Billion-Dollar Industrial Pipeline

Charter Hall is continuing to pump up its prime industrial fund by raising $2.6 billion to fund new acquisitions and a hefty development pipeline.

A mix of Australian and offshore investors supported the capital raising including 29 new investors to boost the $1 billion-plus for future projects in the CPIF portfolio.

Currently it has $5.8 billion in industrial and logistics properties, including 76 assets and 2.6 million square metres of space predominantly located on the Eastern Seaboard.

One of Charter Hall's major projects in development is the midwest logistics hub at 500 Dohertys Road, Truganina, west of Melbourne.

Nine warehouses are being built on the 59-hectare site already attracting Coles, Toll, Bridgestone, Uniqlo and toilet paper manufacturer Encore Tissue as tenants.

Related: Charter Hall Moves On Petrol Stations in $1.25bn Deal

One of the most recent acquisitions for the CPIF portfolio was a share in four Aldi distribution centres as well as three Arnott’s Biscuits factories in late 2019.

Charter Hall chief executive David Harrison said the forecast is looking good for the portfolio which is 95 per cent leased to government, publicly listed or nationally recognised tenants.

“The industrial and logistics sector continues to benefit from the rapid growth in online retailing and the focus on supply chain efficiencies,” Harrison said.

“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 deployment of capital remains competitive.”

The CPIF has a 52 per cent exposure to the consumer staples sector and is underpinned by a weighted average lease expiry of 10.6 years and 98 per cent occupancy.

Demand for industrial floorspace is expected to continue with more than 2 million square metres taken up this year across the country.