Charter Hall Group’s direct office fund (DOF) is seeking to raise $250 million from investors in a bid to grow its office property portfolio to $1.2 billion, according to the fund manager.
The DOF already held nine fully leased office buildings in Sydney, Melbourne, Brisbane and Perth valued at over $842 million.
DOF aimed to provide investors with sustainable and stable tax advantaged income with the potential for capital growth. It returned 20.1 per cent in the 12 months to 30 June 2016 and distribution were 7.5 per cent per annum (paid quarterly).
DOF’s annualised distributions were forecast to grow to an annualised 7.75 cents per unit for the year ending 30 June 2017.
The DOF had a 100 per cent occupancy rate, which was above the Property Councils of Australia’s benchmark, while it also held a 9.2 year weighted average lease expiry, which was the highest in the sector.
