Charter Hall Group has established a new investment partnership with Tokyo Tatemono and UBS Asset Management, seeded with an Australian industrial portfolio with an end value of A$1.2bn (€740m).
It comprises three Sydney assets, two Brisbane assets and a strategic 20-hectare infill development site in Melbourne’s tightly held Dandenong precinct. The portfolio provides resilient income underpinned by strong covenants and exposure to Australia’s essential consumer supply chains, according to Charter Hall.
The transaction represents Tokyo Tatemono’s first investment with Charter Hall and its first exposure to Australia’s industrial & logistics sector. Following previous investment across Charter Hall’s wholesale pooled funds, this transaction marks UBS Asset Management’s first direct partnership with Charter Hall in this sector.
Fumio Tajima, managing executive officer – overseas business division director, Tokyo Tatemono, said: “Australia’s industrial and logistics sector presents a compelling investment opportunity, supported by attractive market fundamentals, resilient occupier demand and long-term growth drivers.
“Charter Hall’s market-leading platform, deep local expertise and proven investment track record made this portfolio an attractive entry point for Tokyo Tatemono’s first investment in the sector. We look forward to partnering with Charter Hall and UBS Asset Management and building a long-term relationship as we grow our exposure to the sector,” said Tajima.
David Harrison, managing director & group CEO of Charter Hall, said: “This partnership reflects the scale of our platform, our ability to source high-quality opportunities and our focus on creating strategic outcomes for our investor partners.
“We welcome Tokyo Tatemono as a new capital partner. As one of Japan’s leading real estate groups, Tokyo Tatemono brings a highly aligned, long-term investment approach and shares our conviction in the Australian logistics sector,” he said.
Harrison noted the sector continued to be supported by strong long-term fundamentals, including population growth and increasing demand for modern supply chain infrastructure.
Richard Stacker, Charter Hall’s industrial & logistics CEO, said: “Together with Tokyo Tatemono, we have assembled a portfolio that reflects our partnership-led approach and our focus on delivering sustainable, long-term value for investors.”
Following the success of Charter Hall’s recently announced partnership with a major domestic capital partner, Stacker said this transaction demonstrated continued demand from domestic and offshore capital for high-quality Australian logistics real estate.
Just over a fortnight ago, Charter Hall’s industrial & logistics platform, which is now valued at A$24.9bn, acquired more assets to increase its partnership with a major domestic capital partner to a total value of A$650m.
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