Charter Hall books loss on Hobart asset
Charter Hall has taken a haircut selling a Woolworths-backed industrial investment held five and a half years.
The cold storage and distribution centre at 2-4 Bender Drive, Derwent Park, sold this week for $13.375 million – a 5.84 per cent net passing yield.
The tenant, PFD Food Services, expanded the improvements in 2025 at its own expense.
Charter Hall held the asset on behalf of the Prime Industrial Fund.
The buyer is an interstate private investor introduced by CBRE’s Private Wealth Asian Investment Services team.
Earlier this week, realestatesource.com.au reported Charter Hall bought a Fortitude Valley office development site for $32.8m.
Don O’Rorke’s Consolidated Properties assembled the three sites, obtained a permit for a 10-level office and secured the Australian Federal Police as tenant before selling the amalgamated holding off-market.
Hobart sale falls short
On 1.385 hectares, the Hobart property contains a 4520 square metre cold storage and distribution centre.
The 15-year lease runs to 2036, with fixed annual rent increases of 2.8pc.
PFD has seven five-year options (extending occupancy to 2071).
It also picks up all outgoings, including council rates, land tax, building insurance, public liability insurance and management fees (continues below).
Charter Hall paid $13.747m, settling in April, 2021.
It was represented for the on sale by CBRE’s Yosh Mendis.
Derwent Park is seven kilometres north of Hobart’s CBD.
Portfolio history
Charter Hall acquired the Derwent Park property as part of a $269.4m purchase of 25 cold storage and food distribution centres in 2021 from PFD Food Services – then owned by the Smith family.
The portfolio comprised about 29.3ha of land and 82,331 sqm of lettable area.
Woolworths agreed in August 2020 to acquire a 65pc interest in PFD alongside the Smith family, with the deal completed in mid-2021.
Woolworths subsequently bought the balance (35pc) after minority shareholders triggered their put option in August 2024, with the acquisition finalised in the first half of FY25.
At the time, Charter Hall said 54pc of CPIF’s portfolio was leased to food and beverage companies including ALDI, Arnott’s, Coca-Cola Amatil, Coles, Lion Dairy, Metcash and Woolworths.
Subscribe to our newsletter at the bottom of this page.
