Charter Hall’s property funds management reported an EBITDA of $23.3 million, representing 36 per cent of the group’s total EBITDA.
The group’s total funds under management are $9.4 billion, which compares to $10.7 billion at 30 June 2011. This reflects the $1.7 billion disposal of Charter Hall Office REIT’s, now Charter Hall Office Trust, United States portfolio and a number of offshore sales within Charter Hall Retail REIT’s portfolio.
Its property investment portfolio is well diversified across the core property sectors of office, retail and industrial. The portfolio’s top ten tenants include Australian companies such as Wesfarmers and Woolworths.
Charter Hall has also seen renewed institutional and retail investor interest in Australian property, with the Group securing over $1.3 billion of capital across its unlisted wholesale and retail platforms since 30 June 2011.
“This momentum has continued with the acquisition of the $164 million Bay Village Shopping Centre with a wholesale global institutional partner,” Charter Hall joint managing director David Harrison said. “In addition, unlisted retail investor fund inflows have included Direct Industrial Fund and 144 Stirling Street Trust and most recently by acquisition of the $422 million PFA Diversified Property Trust.”
Charter Hall realised almost $70 million of capital from its co-investments and reinvested $41 million into new investments including increasing its stake in Charter Hall Retail REIT.
In a separate announcement, the company entered into an unconditional contract for the sale of Mile End Homemaker Centre, South Australia for $43.8 million. The gross sale price is in line with the June 2012 book value and represents a passing yield of approximately 9.6 per cent.
“We regularly review our domestic portfolio composition and the sale of Mile End is in line with our strategy of recycling assets and reinvesting this capital into accretive grocery anchored shopping centre acquisitions or redevelopment opportunities. As announced at our full year results, we will continue to look at acquisition opportunities within the Australian market in line with our investment criteria,” Scott Dundas, fund manager for the REIT, said.
The settlement is expected in December 2012.