Tokyo Tatemono, UBS Back Charter Hall's New A$1.2B Industrial Venture
Charter Hall Group has launched Charter Hall Industrial Partnership 5, backed by Tokyo Tatemono and UBS Asset Management, with a target end value of A$1.2 billion. The fund is seeded with six east-coast Australian industrial properties, marking Tokyo Tatemono's first logistics investment in the coun
Charter Hall Group has established a new industrial venture, Charter Hall Industrial Partnership 5, backed by Tokyo Tatemono and UBS Asset Management, with a goal of creating an investment vehicle with an end value of A$1.2 billion (US$859.3 million), the property investment manager and the Japanese developer announced late last week.
The new fund is seeded with six industrial properties along Australia's east coast, primarily sourced from Charter Hall's A$14.3 billion Charter Hall Prime Industrial Fund, according to records seen by Mingtiandi. Tenants in the portfolio include retailers Coles and ALDI as well as Coca-Cola, Charter Hall said. The transaction for the 335,000 square metre (3.6 million square foot) seed portfolio is Tokyo Tatemono's first investment with Charter Hall and its first in Australia's industrial and logistics sector, the Sydney-based fund manager said.
“Australia's industrial and logistics sector presents a compelling investment opportunity, supported by attractive market fundamentals, resilient occupier demand and long-term growth drivers,” said Fumio Tajima, managing executive officer and director of the overseas business division for Tokyo Tatemono.
The deal includes three buildings in Sydney, two in Brisbane and a Melbourne site, and comes as Australia's industrial sector attracts fresh investment after occupier demand strengthened in the first half of 2026. CBRE estimates that the net change in the total amount of leased space exceeded 1.4 million square metres (15.1 million square feet) in the period, more than double the level recorded in the second half of 2025.
The Sydney properties include three single-storey buildings in Wetherill Park, about 32 kilometres (20 miles) west of central Sydney. Following a 2020 commitment by Coles, Charter Hall completed the properties in 2023, with the trio spanning 73,835 square metres of net lettable area on a 142,599 square-metre site. The assets are fully leased to the supermarket giant. In Queensland, the portfolio includes two single-storey buildings in Brendale, about 22 kilometres north of Brisbane, completed in 2015 with a partial expansion planned for this year. The Brendale assets have 71,670 square metres of net lettable area on a 185,500 square-metre site, and are fully occupied by ALDI, which committed in February to expand its existing lease. The second Queensland asset, in Richlands southwest of Brisbane, comprises two single-storey buildings completed in 1993 and expanded in 2017, offering 79,261 square metres on a 249,000 square-metre site, leased to Coca-Cola. The development project in Victoria's Dandenong South district, about 31 kilometres south-east of Melbourne, will comprise four single-storey buildings with a planned net lettable area of about 110,943 square metres, with construction scheduled to begin in 2026 and completion expected in 2030.
“This transaction demonstrates continued demand from domestic and offshore capital for high-quality Australian logistics real estate,” said Richard Stacker, chief executive of Charter Hall's industrial and logistics division. Tokyo Tatemono has made overseas expansion a key part of its strategy, expecting to invest JPY 110 billion (US$687.1 million) outside Japan as part of its fiscal 2025-2027 plan. The investment with Charter Hall represents the company's first logistics commitment and its fourth business venture in Australia, it said. “As one of Japan's leading real estate groups, Tokyo Tatemono brings a highly aligned, long-term investment approach and shares our conviction in the Australian logistics sector,” said David Harrison, managing director and group chief executive of Charter Hall.
The partnership also extends Charter Hall's relationship with UBS, marking UBS Asset Management's first direct partnership with Charter Hall in the industrial and logistics sector. “We value our longstanding relationship with UBS Asset Management and are pleased to extend it into this first direct Industrial & Logistics partnership,” Stacker said. Charter Hall earlier this month paid A$192.4 million to acquire three logistics assets southwest of Brisbane on behalf of Charter Hall Industrial Partnership 6, adding to a A$350 million industrial estate the group is developing near Darra, about 20 kilometres southwest of central Brisbane.
