Beacon Lighting sells Parkinson distribution centre to Charter Hall on a leaseback

Charter Hall Direct Industrial Fund No 4 (DIF4) is paying ASX-listed Beacon Lighting $28 million for an ex-Masters store turned distribution centre in Brisbane’s south Parkinson.

The 58 Precinct Street deal is being struck on a 5.38 per cent passing yield.

Purpose-built for Woolworths Limited’s failed hardware business five years ago, the property was re positioned since selling to Beacon Lighting for $12.5 million after costs, early last year.

Now a 13,096 square metre logistics centre, the warehouse services the retailer’s markets in New South Wales and Queensland.

The building occupies just over a third of the 3.64 hectare block, at the front of the Sitelink Business Park, approximately 20 kilometres from the CBD.

Beacon Lighting offered it via CBRE’s Jack Pershouse with an eight year leaseback and three five year renewal options.

At the same time as announcing the sale to Charter Hall today, Beacon Lighting confirmed it would wind down its Energy Solution business – attributing a one-off cost to this, of $3.4-$3.9 million.

The facility occupies 36 per cent of the 3.64 hectare site.

Parkinson property fit the bill: Charter Hall

“The acquisition of 58 Precinct Street, Parkinson, is consistent with DIF4’s strategy of acquiring well located, quality industrial and logistics properties with long lease terms, that are located close to major transport infrastructure,” Charter Hall Direct chief executive officer Steven Bennett said.

“This acquisition is another example of Charter Hall building strong relationships with major retailers to service their growing distribution requirements and also our ability to acquire assets through sale and leasebacks with major Australian corporations”.

Charter Hall’s Parkinson asset is close to the Logan Motorway, Beaudesert Road and Mt Lindesay Highway intersection – which connects to the Gateway Motorway via the Brisbane’s Western Corridor, and the M1.

“The location enables impeccable access to the…Brisbane CBD, Port of Brisbane, Brisbane Airport and the Gold Coast,” Mr Bennett said.

“These transport links are critical for Beacon Lighting given the Parkinson warehouse services NSW, metropolitan Brisbane and regional Queensland up to Mackay”.

The executive added that future supply in Parkinson, a major Brisbane industrial precinct, is constrained by designated green space and residential development.

Charter Hall Direct Industrial Fund No 4

Following its 58 Precinct Street purchase, DIF4 will control 11 industrial and logistics properties.

Just 1 per cent of its portfolio is vacant.

The weighted average lease expiry (WALE) is a long 10.2 years.

Charter Hall values DIF4’s gross assets at $437 million.

It expects to grow funds under management to in excess of $500 million following the raising of additional equity (DIF4 is currently open for investment from retail, HNW and SMSF investors).

Mr Bennett said DIF4 “is benefiting from strong equity inflows as investors are attracted to the quality of industrial portfolio, the Fund’s currently distribution yield of 6.2 per cent and the quarterly distribution paid to investors”.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco