According to a statement by Charter Hall, the Direct FPA Fund invests in seven office buildings in various Australian capital cities.
The $334 million fund offers 7 per cent per annum income at monthly distributions and a weighted average lease expiry of 8.4 years.
The fund has a 100 per cent occupancy rate, 72 per cent of which are government tenants.
Commenting on the announcement, Charter Hall Direct head Steven Bennett said the fund gave investors and SMSF trustees exposure to buildings in significant markets with long-leasing tenants.
“This formula translates into an attractive current distribution yield of 7 per cent per annum, paid monthly with potential for capital growth.
“These numbers compare very favourably to current interest rates available on cash at 1.5 per cent,” Mr Bennett said.
Charter Hall is a property group with more than $21.9 billion funds under management and offices in Sydney, Melbourne, Adelaide, Brisbane and Perth.
