Charter Pacific to acquire a 50% stake in Priority Property Fund
Exposure to key property assets in Melbourne
November 28, 2007
Queensland-based listed investment company Charter Pacific Corporation (ASX: CHF), through its corporate advisory business Charter Pacific Capital, continues to expand its funds management operations today announcing the acquisition of a 50% stake in the Priority Property Fund.
Charter Pacific has agreed to acquire a 50% stake in the responsible entity of The Fund, Priority Plus Funds Management.
The Priority Property Fund comprises a $90 million portfolio of well positioned commercial and retail properties in Melbourne, Victoria, of which the Camberwell Shopping Centre is The Fund’s principal retail property asset
Nearing completion and due for occupation in April 2008, the Camberwell Shopping Centre development is a 5-storey retail and commercial shopping centre. Coles is the anchor tenant of the property, which also includes an additional 33 specialty stores.
The Fund also owns a property at Tram Road, Doncaster. A retail bulky goods centre, tenants include Officeworks, Autobarn and Clark Rubber. The property is situated adjacent to the Westfield Centre on Doncaster Road.
In addition to the Camberwell and Doncaster properties, there is a strong pipeline of future property investment opportunities for The Fund over a 3 to 6 month time horizon, ranging from established property assets to property development opportunities.
Charter Pacific Managing Director, Kevin Dart, said that the acquisition represented another significant step in the Group’s financial services strategy.
“Earlier in 2007 we established Charter Pacific Capital to accelerate our revenue growth by capturing corporate advisory and funds management opportunities through our extensive network of corporate and business relationships.
Whilst the acquisition price does not represent a material transaction for the Company, it is a key step in executing that strategy. It will bring to Charter Pacific new revenue streams through property development and funds management growth opportunities.
The acquisition of the 50% stake in the Priority Property Fund was overseen by recently appointed Executive Chairman of Charter Pacific Capital, Bruce McMenamin, who leads the Charter Pacific Capital team from the new Melbourne office. With offices in Brisbane, Sydney and Melbourne, Charter Pacific Capital now has a presence in the three principal corporate centres in Australia.
About Charter Pacific
Charter Pacific Corporation Limited is an investment company, listed on the Australian Stock Exchange (ASX: CHF). It invests in a variety of equity investments in listed and unlisted companies. Charter Pacific has recently broadened its operations into the financial services sector through the establishment of Charter Pacific Funds Management Limited, an AFS licensed funds management business, and Charter Pacific Capital Limited, an AFS licensed corporate advisory house. Charter Pacific's portfolio of investments spans a diverse range of industry sectors.