Chater Hall launches second automotive property trust
Charter Hall Group's direct property business has launched a second automotive retail property trust and expect it to earn a 7.25 per cent yield plus potential capital growth.
Charter Hall said it was seeking to raise $48 million in equity so it could purchase an $82 million property portfolio with a 13-year weighted average lease expiry (WALE).
The trust had already acquired four properties for the portfolio in Sydney, Melbourne, Brisbane and Perth.
The Charter Hall Direct Automotive Trust No 2 (DAT2) started after the "successful completion of DAT1", which closed to new investment in late 2015, the fund manager said.
DAT2's assets would include "well-established and new automotive dealerships", Charter Hall said.
While all assets (100 per cent) would be on long-term leases by Automotive Holdings Group (AHG), equity contributions were expected from retail, high net worth and self-managed superannuation fund (SMSF) investors, the company said.
The trust would have an initial distribution of 7.25 per cent for one, two and three years, and could potentially offer capital growth over the next six years, Charter Hall said.
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