Charter Hall has tipped that demand will be strong for Australian property assets, given the long lease structures with locked-in rental growth that are cannot be achieved elsewhere.
Speaking at the Macquarie investment conference in Sydney, the property fund manager, owner and developer’s chief executive, David Harrison, said there has been high capital inflow to its unlisted and listed trusts.
“Asia was said to have three-year market reviews and whilst North America does have fixed escalators, they can be at times half that of Australia. This puts Australia in a positive position for strong, reliable cash flow growth for domestic capital and foreign capital to invest into,” Mr Harrison said.
Charter Hall is looking at a half stake in the leasehold of the $1.8 billion Chifley Tower and Plaza, Sydney, being sold by Singapore’s sovereign wealth fund GIC.
“The are record low vacancies in Sydney and Melbourne with the yield curve further supporting capitalisation rates,” Mr Harrison told the conference.