A new industrial partnership between Dutch pension fund PGGM and Charter Hall has already secured a fourth investment, to bring the portfolio value to A$300m (€182m) in recent months.
The Charter Hall PGGM Industrial Partnership (CHPIP) was formed 12 months ago with an initial plan to acquire a portfolio of A$800m.
Charter Hall’s CIO, Sean McMahon, told IPE Real Assets: “We have been cultivating a relationship with PGGM over the past four to five years.”
McMahon said the partners chose not to announce the platform until now because “we want to get deal flows and activity momentum” before going public.
CHPIP would target a combination of core land-rich investments and selective stabilised assets, together with brownfield and value-add opportunities including develop-to-core strategies, he said.
Based on the partner’s initial equity investment, CHPIP would have a target portfolio of A$800m, but McMahon told IPE Real Assets the final size of the platform could be “significantly” bigger.”
Charter Hall has a minority interest in the partnership, which will run for seven years. It will then be reviewed and could be rolled over for a longer period.
PGGM’s senior director APAC, Ronald Bausch, said: “We are busy looking at new opportunities that fit with the mandate.
“Australian logistics remains an attractive relative investment, and we look forward to building a scale relationship with Charter Hall.”
CHPIP has accumulated a portfolio of seven assets. So far, its acquisitions include a prime industrial investment in Melbourne on a 20-year sale-and-leaseback basis for A$87m and a A$207m acquisition at Minto, in Sydney’s west.
The Minto asset was acquired in a 50-50 joint venture with Charter Hall’s A$6bn Charter Hall Prime Industrial Fund, McMahon said.
Charter Hall social infrastructure REIT buys emergency services centre
Charter Hall Social Infrastructure REIT (CQE) has bought a new purpose-built emergency services centre in Adelaide, South Australia from Axiom Properties in a deal worth about A$103m.
The South Australian government will lease the space for 15 years to house four state emergency services agencies.
David Harrison, Charter Hall Group managing director and CEO said: “We continue to see good opportunities to partner with government and enterprise in South Australia, continuing our long involvement in the state”, noting that Charter Hall recently completed the A$251m development of the GPO Exchange in that city.
To read the digital edition of the latest IPE Real Assets magazine click here.
