Charter Hall in $82m land buy

A newly-established trust managed by Charter Hall has purchased four properties leased by Perth-based Automotive Holdings Group in a deal worth $82 million.

Charter Hall has set up a second trust to acquire a site, which is currently occupied by AHG’s Balcatta Toyota dealership and three other AHG car yard-occupied sites on the east coast, with the Perth-based car retailer to lease the properties post-transaction at a 13-year weighted average lease expiry.

The private trust, named Charter Hall Direct Automotive Trust (DAT) 2, will also seek to raise $48 million in equity to fund the acquisition.

DAT1 was established in August last year to acquire three of AHG’s east coast properties in a $50 million deal.

The DAT2 portfolio will target an initial gearing of 49.9 per cent.

Charter Hall head of direct property Nick Kelly said the DAT series showed the group’s ability to originate new funds that delivered strong returns to investors.

“Our Direct Property business continues to deliver market leading returns for our retail investors and I am pleased with the consistent delivery of targeted income distribution yields,” he said.

“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.”

AHG shares were 0.7 per cent lower to $3.94 each ahead of the close of trade, while Charter Hall shares were 1.2 per cent higher to $5.29 each.