Image: Charter Hall via LinkedIn
Charter Hall is ramping up its convenience retail portfolio, targeting institutional and superannuation investors with strong-performing, necessity-based assets.
According to The Australian, the group’s $2.5 billion Charter Hall Convenience Retail Fund (CCRF) has been added to the MSCI/Mercer Australia Core Wholesale Property Fund Index, a key benchmark that boosts its visibility among major property investors.
The fund has already surpassed fundraising expectations, acquiring several shopping centres along Australia’s eastern seaboard and expanding its $16 billion convenience retail platform.
Strong Performance and Strategic Focus
Charter Hall’s convenience retail arm has delivered annual returns of 9.4%, outperforming traditional mall funds hit by e-commerce and structural retail shifts. CCRF invests in metropolitan convenience centres and net-leased retail assets, including properties leased to Bunnings Warehouse, to ensure stable income and long-term growth.
The group’s focus on index inclusion underscores its institutional appeal, offering investors diversified exposure across retail, industrial, and office sectors.
“The inclusion of CCRF now provides our investors with a suite of funds spanning three core sectors,” said Chief Executive David Harrison.
Retail Sector Momentum
The shift toward everyday retail assets mirrors wider market trends.
- Charter Hall Retail REIT 2025 Full Year Results highlighted the company’s strong weighting toward convenience retail tenants and solid portfolio valuations.
- The Retail & LFR Market Pulse | Q2 2025 showed continued demand for food, healthcare, and essential service tenants.
- Similarly, QIC Targets $1.5B Everyday Retail Expansion demonstrated rising institutional appetite for necessity-based retail assets.
Expansion and Market Confidence
Charter Hall is consolidating its position with recent acquisitions, including Burwood One Shopping Centre in Melbourne and Chullora Marketplace in Sydney.
Other convenience-focused transactions across the country show a robust investment appetite:
- St Albans Convenience Retail Centre attracted significant buyer interest.
- A 7-Eleven in Ellenbrook, WA achieved a sharp 5.96% yield, one of the strongest in years.
- Broader confidence in the sector continues as Australia’s Retail Sentiment Rises, driven by steady spending and resilient demand.
With solid returns, index recognition, and growing institutional demand, Charter Hall’s retail expansion underscores the ongoing strength of convenience-based retail assets in Australia.
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