This article is from the Australian Property Journal archive
PROPERTY funds manager Charter Hall has also been forced to freeze redemptions for its unlisted property fund, the Charter Hall Umbrella Fund, in response to the Federal Government bank guarantee scheme.
Charter Hall’s wholesale funds director Nick Kelly said the Australian funds management industry has recently seen numerous retail property, mortgage and income funds close to applications and redemptions in response to an increased number of investors requesting the redemption of their funds.
“The requests for immediate liquidity have been amplified in recent weeks by the Federal Government’s guarantee of cash deposits.
“In the context of the current market environment and the continued focus on those funds which remain open to liquidity, Charter Hall has suspended the liquidity facility for CHUF,” Kelly added.
Kelly said CHUF’s investments remain well positioned with close to full occupancy, high quality tenant covenants, long weighted average lease expiries and fixed annual rental growth.
However, CHUF unit holders can sell units to Charter Hall or the Charter Hall Property Trust, for the current CHUF Unit Price less a facilitation fee.
The Charter Hall Property Trust has a $58.8 million (28.8%) co-investment in the fund.
“The manager will consult with unit holders and their financial advisers and intends on re-opening the fund following a review of its liquidity options at a time in the future when markets stabilise,” Kelly concluded.
CHC shares fell 0.05 cent to close at 40 cents.
Australian Property Journal
