Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Charter Hall launches the $2.5 billion Charter Hall Convenience Retail Fund (CCRF) with an initial $1.35 billion portfolio.

  • The Group secures a $2.1 billion investment mandate from Challenger Life for management of direct Australian property assets.

  • Total wholesale pooled fund platform now spans $24 billion across office, industrial, and convenience retail sectors.

Charter Hall Group (ASX:CHC) has announced significant growth in its wholesale investment management platform with the launch of the $2.5 billion Charter Hall Convenience Retail Fund (CCRF) and the appointment to manage a $2.1 billion investment mandate for Challenger Life.

The CCRF is a new wholesale pooled fund focused on acquiring metropolitan convenience shopping centres and selected metropolitan net-lease retail assets across Australia. It joins Charter Hall’s existing wholesale pooled funds, including the $14 billion Charter Hall Prime Industrial Fund (CPIF) and the $8 billion Charter Hall Prime Office Fund (CPOF). The Group currently manages Australia’s largest convenience retail property platform, valued at over $16 billion.

CCRF begins operations with an initial gross asset value portfolio of $1.35 billion, comprising 16 assets sourced through both off-market transactions and transfers from existing retail partnerships within Charter Hall Retail REIT (ASX:CQR). The foundation equity raising totals $1.75 billion, including a $100 million co-investment from Charter Hall and a $385 million foundation investment from CQR. Additional equity commitments have been secured from 12 predominantly domestic institutional and wholesale investors.

Initially unlevered, the fund has a target long-term gearing of up to 30% and remains open for further equity commitments, with several investors in advanced stages of due diligence. The investment capacity of $2.5 billion is based on foundation equity and available debt capacity within the fund’s guidelines.

Charter Hall intends to apply for CCRF’s inclusion in the MSCI/Mercer Wholesale Core Property Fund Index, joining CPOF and CPIF, which already feature in the benchmark. If accepted, Charter Hall’s funds would represent over 20% of this national property benchmark.

Alongside the CCRF launch, Charter Hall has finalised terms to manage Challenger Life’s $2.1 billion portfolio of direct Australian property assets. The assets will be managed within the Group’s wholesale investment management platform. This new mandate broadens Charter Hall’s institutional client base and adds to its long-term managed asset growth.

With the addition of CCRF and the Challenger mandate, Charter Hall’s wholesale pooled fund platform now invests across office, industrial, and convenience retail sectors, managing total assets of $24 billion with capacity for further expansion.

Managing Director and Group CEO David Harrison said the CCRF offers wholesale investors access to high-conviction strategies within a sector dominated by non-discretionary retailers and supported by major anchor tenants. Regarding the Challenger mandate, Harrison noted the Group’s plans to implement strategies aimed at maximising long-term value for the core portfolio.

Charter Hall will release its financial year 2025 results on 21 August 2025.