Wyllie spends $18m on Vic property

Perth investment company Wyllie Group has bought out its joint venture partner, Charter Hall Group's Diversified Property Fund, from a Melbourne property portfolio for $18.3 million.

DPF and Wyllie bought the portfolio of 10 properties in 2007.

Since then, Charter Hall has been seeking to reduce its debt levels.

The announcement is below:

CHARTER HALL'S DPF SELLS 50% SHARE IN FOSTERS PORTFOLIO TO JV PARTNER WYLLIE GROUP FOR $18.3 MILLION

Charter Hall Group (CHC) is pleased to announce that managed fund, Diversified Property Fund (DPF), has sold its 50% share of the Fosters Abbotsford portfolio in Melbourne for $18.3 million. The transaction is due to settle by 30 June 2009.

DPF and Wyllie bought the portfolio in 2007 comprising 10 properties with lease terms ranging from 7 to 10 years. The implied yield on the latest transaction is 8.15% and represents a 9% discount to the December 2008 Independent book value.

David Harrison, Joint Managing Director of Charter Hall said: "This sale is consistent with the de-leveraging strategy previously announced for several managed funds and we are pleased that our Joint Venture partner, the Wyllie Group has secured DPF's share of an excellent portfolio of inner suburban Melbourne properties with long term leases to the Fosters Group".

Melissa Karlson, Managing Director of Wyllie Group further commented that "The Wyllie Group continues to source securely leased real estate assets which have value add/development prospects over the medium to long term, which also diversify the Group's investments. The Wyllie Group took up its full entitlement in the recent Charter Hall capital raising, endorsing the Group's strategy of deleveraging and strengthening the balance sheet of CHC and its managed funds".