News and Media
30 November 2009
Defence Housing Australia offers major investment opportunity
Defence Housing Australia (DHA) today announced a major investment opportunity for institutional and wholesale investors to purchase and leaseback significant portfolios of its residential real estate holdings.
Expressions of interest are sought for the sale and leaseback of a minimum $20 million of DHA property assets per transaction. DHA is seeking to transact at least $100 million per year on a recurring basis. The properties will be managed by DHA and will be used to house members of the Australian Defence Force (ADF) and their families.
DHA properties are located throughout Australia, in capital cities and major regional centres where the ADF has a presence. They are generally freestanding dwellings, averaging 2.5 years old and situated close to amenities. Successful parties will be invited to work with DHA to tailor a portfolio that meets their investment criteria.
""The offering provides a unique opportunity for investors to acquire diversified, investment grade, residential property assets from a Standard & Poor’s AA+ rated Australian Government Business Enterprise," said DHA’s Managing Director, Mr Michael Del Gigante.
"The properties will be sold and leased back with attractive terms that overcome many of the risks associated with conventional residential property investment. These include guaranteed rental income and expert property management by DHA for the term of the lease which is expected to be up to 15 years plus options," he said.
In addition to the sale and leaseback of its current assets, DHA is seeking expressions of interest from parties wishing to form an ongoing relationship for the development of future portfolios. This may include, but is not limited to, large land owners, developers or building contractors interested in partnering in the development of additional dwellings.
"I believe the expression of interest process will be supported by the resilience and positive future prospects of the Australian residential property market and I anticipate a strong response," Mr Del Gigante said.
DHA has appointed leading investment advisory group Grant Samuel as transaction advisor. All enquiries should be directed to them and expressions of interest must be submitted by 3pm AEDST on Monday 2 March 2010.
Established under the Defence Housing Australia Act 1987, DHA is responsible for the supply of housing and related services to ADF members and their families in line with Department of Defence requirements and supply agreements.
DHA currently manages over 17,300 properties worth $7.8 billion. Over 11,000 of these properties are managed on behalf of investors, the majority of whom acquired their property via DHA's retail sale and leaseback program. This program generates around $300 million in revenue a year and will be maintained by DHA in addition to any portfolio sales transactions.
For more information
Natalie Cooper (DHA) 0421 040 098
Jason Williams (Grant Samuel) 02 9324 4243