WACOL WAREHOUSE SCOOPED FOR $27M
Written on the 13 October 2015
SINGAPOREAN investment firm Cache Logistics Trust has bolstered its presence in Brisbane, after acquiring a warehouse in Wacol for $27 million.
Sold on behalf of trustee One Funds Management Limited, the deal marks Cache Logistics Trust's fourth acquisition in Australia.
Cache CEO Daniel Cerf says the acquisition will provide income growth and diversification to investors.
"The proposed acquisition will boost Cache's Australian portfolio to four warehouses, and further expands our footprint in this market," Cerf says.
"The long weighted average lease expiry (WALE) of 7.9 years by lettable area will also lengthen Cache's portfolio WALE to 4.6 years and strengthen its ability to deliver regular and stable distributions to unitholders."
The modern single-storey warehouse features two levels of ancillary office, and is located within 20km of the CBD.
CBRE's Ed Bull negotiated the sale on behalf of a private investor and says it's a significant transaction for the Brisbane industrial investment market.
"The process was run formally off-market and received five offers at the close of the campaign," he says.
"The buyer was impressed by the improvements and the quality of the covenant."
The property will be leased to Penske Automotive Group subsidiary Western Star Trucks Australia with an annual rental escalation of 4 per cent per annum until August 2023.