PGGM, Charter Hall tie-up acquires fourth asset for planned $578m asset pool

REUTERS/Thomas White

A tie-up between Australian property group Charter Hall and Dutch pension fund manager PGGM has acquired a fourth asset, bringing the portfolio value to A$300 million ($216.87 million).

The PGGM-Charter Hall partnership, called CHPIP, expects to have a total portfolio value of A$800 million ($578.32 million). CHPIP, set up in the fourth quarter of 2019, is targeting investments in Australian industrial, logistics, manufacturing and last-mile distribution properties; both land investments and stabilized assets would be considered.

PGGM holds 88 per cent in the tie-up, while Charter Hall holds the remainder.

On Wednesday, Charter Hall said in a press release CHPIP acquired a Melbourne industrial asset in a 20-year sale-and-lease-back deal for A$87 million.

That followed a recently settled A$207 million acquisition located in Minto, in south-west Sydney, in a 50-50 joint venture with Charter Hall’s A$6 billion Charter Hall Prime Industrial Fund, the statement said.

In addition, CHPIP acquired a site in Kingsgrove, Sydney, and several long-leased assets recently, bringing the portfolio to seven assets, the statement said.

“We are well underway in building a nationally diversified logistics portfolio. Charter Hall is using its deep access to deal flow and will use its in-house development skills to add value to brownfield investments such as Minto,” Sean McMahon, Charter Hall’s chief investment officer, said in the statement.

David Harrison, Charter Hall’s managing director and CEO, added that the industrial and logistics sector was seeing a long-term uptrend amid the growth in ecommerce and the need to boost supply-chain efficiency.

“Most institutional investors are significantly underweight within the industrial and logistics sector and wish to increase their exposure to the strongly performing sector,” Harrison said in the statement.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.