)
Charter Hall Group (ASX: CHC) is on a spending spree for logistics property, purchasing a $115 million logistics property in Western Sydney within a week of forking out $648 million for ALDI's logistics portfolio.
Charter Hall's Prime Industrial Fund (CPIF) and Direct Industrial Fund No.4 (DIF4) secured the property on 40-66 Lockwood Drive, Erskine Park in an off-market transaction.
The property is currently leased to Winc Australia, formerly known as Staples and Corporate Express, which is a national supplier of office essentials, furniture, safety equipment, IT solutions, toiletries and kitchen products.
Winc has entered into a new 12-year lease to commence at expiry of its current lease in August.
"The acquisition of Winc's Erskine Park facility is consistent with both the Group's and Funds' strategy to acquire core logistics properties leased to good quality tenants on long term leases situated in key industrial precincts with access to major infrastructure and transport networks," says Charter Hall's industrial & logistics CEO, Richard Stacker.
"We were able to acquire the property off-market via Savills, Mr Michael Fenton, further evidencing our track record for securing both off-market and on-market prime long WALE [weighted average lease expiry] assets.
"Our $10 billion industrial and logistics portfolio continues to grow via a $1.3 billion pre-leased development pipeline and selective acquisitions and is now 90 per cent located on the Eastern Seaboard."
The distribution facility has a total gross lettable area (GLA) of 43,000sqm of which approximately 40,000sqm is used for warehouse accommodation with the remaining 3,000sqm occupied as office accommodation.
The property benefits from two truck access driveways (allowing for full drive around access), a separate access driveway into the large car park, and all-weather super awnings located along both the eastern and western elevations.
"The acquisition provides a rare opportunity to secure a major logistics facility in the tightly held Western Sydney growth corridor that is supported by convenient access to M4 & M7 Motorways and major infrastructure projects underway including the Badgerys Creek Aerotropolis," says CPIF fund manager Richard Mason.
"This acquisition enhances the quality of DIF4's growing industrial portfolio which is approaching $800 million with a portfolio WALE of circa 10 years," adds Direct Property fund manager Miriam Patterson.
"The attractive 3.25 per cent per annum rent reviews adds to the long-term sustainable income growth potential of the portfolio."
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.Business News Australia
)
)
)
)
)
