This article is from the Australian Property Journal archive
CHARTER Hall Direct Property has acquired a $82 million car dealerships portfolio in Sydney, Melbourne Brisbane and Perth to seed its second automotive retail property trust.
The Charter Hall Direct Automotive Trust No 2 (DAT2) is seeking to raise $48 million in equity to acquire the four dealerships.
The assets are 100% leased by Automotive Holdings Group (ASX:AHG) and will offer an initial distribution of 7.25% for years one and two, with an initial gearing of 49.9%
| Location | Dealership | Lease | Option |
| Mount Gravatt, QLD | Holden, Suzuki, Kia, Subaru, Mitsubishi,
Peugeot |
10 years | 4 x 5 years |
| South Morang, VIC | Toyota | 15 years | 4 x 5 years |
| Liverpool, NSW | Mitsubishi | 15 years | 4 x 5 years |
| Balcatta, WA | Toyota | 15 years | 4 x 5 years |
Charter Hall’s head of direct property Nick Kelly said the DAT series is an example of the group’s ability to originate new funds.
DAT2 follows the successful completion of the DAT1 equity raising, launched in August 2015, which also acquired a portfolio of dealerships leased to AHG.
“We are excited to expand the partnership with AHG that will deliver smart, long-term property solutions that meet their business requirements while ensuring that we create value for our capital partners by providing access to high quality investment opportunities,” Kelly added.
“We continue to see high levels of interest in direct property from SMSF trustees who, in a low yield environment, are seeking investments which provide for a strong income yield, high quality assets, and potential for capital value growth, low volatility and regular returns,” Direct property fund manager Steven Bennett said.
Australian Property Journal
