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Colonial First State Property forms $1.4 billion wholesale fund

18 June 2002

Colonial First State Property today announced it will merge the Commonwealth Property Investment Fund (CPIF) with the Colonial First State Wholesale Direct Property Fund (CWF) to form a new wholesale unlisted property trust.

The new unlisted wholesale fund will be called the Direct Property Investment Fund (DPIF) with property assets of approximately $1.4 billion and will provide options in the retail, office and industrial sectors to investors.

The Direct Property Investment Fund features sector specific options with a defined exit strategy of ten years and strong focus on performance. Unitholders will have an opportunity to exit at the end of the sector term.

Colonial First State Property fund manager, Graham Pearson said the merging of the two funds has created stronger and more diversified investment portfolios providing an enhanced risk and return profile to unitholders.

"The focus of the Direct Property Investment Fund is on performance and our active management across specific sectors allows us to maximise returns for our unitholders," he said.


Gross Assets

No. of Assets


Office Sector One




Office Sector Two




Retail Sector




Industrial Sector One




Industrial Sector Two




Table: DPIF Sectors

As a result of the merger, the Direct Property Investment Fund will also launch Office Sector Two. Office Sector One was closed to new investors last year following the acquisition of 1 York St in Sydney.

New money will be accepted into Office Sector Two, which currently holds seven assets valued at approximately $465 million. Assets in the sector include 367 Collins Street in Melbourne and 39 Martin Place in Sydney.

The Retail Sector of the fund holds seven assets valued at nearly $400 million and includes shopping centres in New South Wales, Queensland and Western Australia, including interests in Runaway Bay Shopping Centre in Queensland and Rockingham City and Midland Gate Shopping Centres in Western Australia.

Due to the stapled structure of the two funds the merger was achieved very efficiently at low cost to unitholders.