Shopping centre tycoon John Gandel will pump $82 million into listed development company Charter Hall Group in the Gandel’s family’s first major foray into the property sector in five years.
Gandel Group will emerge with a stake of 15% in Charter Hall, which runs a variety of property trusts and develops its own commercial property projects. Gandel Group will invest $37 million in the company directly, and take stakes in Charter Hall’s office trust and another multi-purpose property trust.
Gandel Group chief executive, Peter Kahan says the company was attracted by Charter Hall’s strong management track record.
“Lately we have been looking in the property sector for good opportunities,” Kahan told the Australian Financial Review.
“We thought property would overshoot to the downside and we have been looking to invest for awhile. Opportunities are now beginning to present themselves. We are looking to expand our portfolio within and outside of property. However, we remain focused on Australia.”
Gandel Group is best known as the part owner of two of Melbourne’s iconic shopping centres, Chadstone and Northland. The family group also owns a 17% stake in CFS Retail Trust.