Fund management giant Charter Hall has raised an astronomical $2.6 billion worth of capital for its industrial arm CPIF, highlighting the confidence in Australia’s industrial property market.
The group has received the financial support in the midst of the pandemic from existing and new investors all over the globe after launching the capital raising campaign in April.
Charter Hall’s Managing Director and Group CEO, Mr David Harrison, said that the company are over the moon with the support demonstrated by investors and that it is a testament to the group’s success.
“The Group is delighted with the strong level of support we have received despite the economic uncertainty caused by COVID-19,” he said.
It demonstrates the quality and resilience of the CPIF portfolio and Charter Hall’s reputation, amongst domestic and global investors, as a leading player in the Australian industrial and logistics market.Charter Hall Managing Director and Group CEO – David Harrison
A total of 29 new investors were included in those who helped raise the capital, with a mix of Australian and offshore backers varying from super fund managers to sovereign wealth funds, insurance companies, and financial institutions from Asia, the Middle East, Europe and North America.
“The capital raising gives the Fund the capacity to grow to in excess of $8 billion 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.
The rise in ecommerce has led to industrial and logistics assets growing in appeal, and Charter Hall are more than capitalising on the booming sectors.
“The industrial and logistics sector continues to benefit from the rapid growth in online retailing and the focus on supply chain efficiencies” said Mr Harrison.
“Charter Hall’s industrial and logistics platform now exceeds $11.5 billion with significant growth prospects.”
Institutions recognise that by investing with Charter Hall, they can secure access to a high quality, growing portfolio of strategically located industrial and logistics assets underpinned by strong tenant covenants and long weighted average lease expiries (WALEs).Charter Hall Managing Director and Group CEO – David Harrison