Investors have been quick to back Charter Hall’s Direct Automotive Trust (DAT), with the fund manager raising $43 million in the first four days of the fund’s existence.
Charter Hall head of direct property, Richard Stacker, said the new trust was a “good fit” for the business, which has been forecast to provide income at 7.5 per cent in the first year.
Through the DAT, Charter Hall has taken ownership of three Automotive Holdings Group sites — made up of five dealerships — in NSW (Castle Hill and Kirrawee) and Queensland (Browns Plains), with a weighted average lease expiry (WALE) of 13 years.
Stacker forecast a total return of 10 per cent with 70 to 80 per cent of that return coming through income over the six year life of the trust.
“The portfolio is providing investors with access to five high quality dealerships in three very good locations,” he said.
“NSW is actually doing particularly well compared to other states, [and] Queensland looks okay, but when you get down to the demographics below that… the growth is coming through in these areas.”
Stacker added that the long WALE will provide investors with the opportunity to extend the life of trust, with the properties fully leased making them an attractive proposition.
“About $43 million has been raised since Tuesday [18 August],” Stacker said.
“Investors have come to it quite quickly.”
