After a successful launch of its first and second industrial funds, property funds group Charter Hall has launched a new fund with the intention of acquiring and managing $250 million worth of industrial property.
With DIF 1 raising $120 million from investors in 2012, and DIF 2 raising $135 million from investors in 2013, DIF 3 aims to give investors an income that is sustainable and stable that has a potential for capital growth.
Charter Hall launched the fund with $49.2 million seeded assets, and is seeking to raise $150 million from investors.
The fund needs to raise $49.8 million to become a co-investor will other Charter Hall funds and purchase its first two assets for $88 million, according to The Australian.
These assets are fully leased to Coles Group and have a 24 and 25 per cent interest in Coles Distribution Centres in Adelaide and Perth.
Located at 136 Horrie Miller Drive, the Coles Distribution Centre in Perth sits on 25 hectares and is inside the Perth airport boundaries and is valued at $196 million.
The Adelaide asset, Edinburgh Parks Industrial Estate, is one of the largest in the state and is valued at $153 million.
The Research house PIR report states that the initial portfolio of the fund offers full occupancy, an excellent tenant, and a long WALE.
“The fund would suit investors who seek a high, secure income yield. Investors must be comfortable with the risks associated with a geared vehicle backed by quality industrial assets located across Australia,” PIR said.