Charter Hall has secured an Eastern Creek industrial site from Western Sydney Parklands Trust.
About 29.4 hectares – or 85 per cent – is developable.
It is also master-planned to contain 170,000 square metres of gross lettable product, estimated upon completion to be valued at over $300 million.
Charter Hall’s $7 billion Prime Industrial Fund will hold the property as a leasehold interest.
The deal comes a week since the trust paid GlaxoSmithKline $106m for a 16.8ha laboratory with medium term development upside in Melbourne’s east Boronia.
Light Horse Industrial Hub
The five year Development Management Agreement for Light Horse Industrial Hub was executed on May 19.
CPIF will enter a 90 year Ground Lease upon the delivery of each building; WSPT will use this annual annuity to manage the cost of operating, maintaining and enhancing its public spaces.
Construction to allow for the first warehouses will begin this year.
Distribution facilities of up to 100,000 sqm could be considered.
“We are delighted to secure the leasehold interest in this strategic parcel of land from WSPT,” Charter Hall managing director and group chief executive officer, David Harrison, said (story continues below).
“This builds on our strong relationship with WSPT and is the third transaction we have undertaken with them, following the Horsley Drive Business Park and Bringelly Road Business Hub development projects which have secured long term lease commitments from major tenant customers such as Coles and Bunnings,” he added.
At the south east corner of the M4 and M7, the Eastern Creek property is about 35 kilometres west of Sydney.
“This is one of the last significant infill greenfield industrial development sites east of the M7 capable of accommodating the growing demand for large state of the art industrial and logistics facilities in Western Sydney,” according to Mr Harrison.
Near infrastructure and consumers
CPIF fund manager, Richard Mason, added the Eastern Creek acquisition replenishes the trust’s Sydney development pipeline and is in line with its strategy of owning land near major transport infrastructure and consumer markets.
“The Light Horse Business Hub…will allow us to meet our customer’s ongoing demand for logistics facilities in the area,” he said.
“The existing State Significant Development approval will provide significantly reduced planning timeframes and allow CPIF to take advantage of changing consumption trends that have been fast tracked by COVID-19 and this has led to increased demand from large omni-channel retailers and e-commerce occupiers.
“The momentum in demand for strategic located industrial space is seeing record leasing activity, particularly for larger automated purpose-built facilities.
“The shortage of zoned, ready to develop land, provides the opportunity to further expand our modern logistics portfolio”.
CPIF’s committed development pipeline is worth c$780m.