Industrial Fund scores top rating


At a time of increased focus on the attractiveness of industrial and logistic themed investment properties due to the e-commerce revolution, independent research house Lonsec has allocated its highest possible rating, ‘Highly Recommended’, to the Charter Hall Direct Industrial Fund No.4, also known by the acronym DIF4.

The fund owns and manages well located industrial properties in established markets, with an existing portfolio of eight properties in NSW, Victoria, South Australia and Western Australia plus an equity interest in a Charter Hall managed wholesale investment partnership that invests in 33 institutional-grade distribution centres across Australia.

Key features of DIF4 include a current income yield of 6% p.a.1 and a fund WALE (weighted average lease expiry) of 10.4 years, among the highest in its class.

Lonsec notes: “The Fund seeks to benefit from growing tenant demand for long-term leases of large, well-located and adaptable industrial sites covering a variety of uses including logistics, distribution, storage, manufacturing and food processing.”

Further, “The portfolio consists of high-quality tenants and is currently 100% occupied. The portfolio is well positioned from a rental increase point of view, increasing by CPI or 3% p.a., which helps provide a natural inflation hedge. Additionally, all direct properties bar one are leased on a triple-net basis, whereby the tenant is responsible for all outgoings, including maintenance capital expenditure.”

“Charter Hall’s high-quality management team has a track record of delivering solid returns on direct property trusts” and the fund “has a conservative gearing target of 30% to 45% with a current LVR of 33%,” Lonsec notes.

DIF4 is currently open for investment with a minimum investment of $20,000, the potential to receive sustainable and stable-tax advantaged income paid quarterly and the potential for capital growth.

DIF4 is currently available on the following platforms:  Asgard, Direct, BT Wrap, BT Panorama, Macquarie, Netwealth, Hub24, Powerwrap, First Wrap, and North.

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