Charter Hall buying Crestmead Distribution Centre from Blackstone for $183.6 million

Charter Hall is paying Blackstone $183.6 million for the Crestmead Distribution Centre, about 29 kilometres south of Brisbane.

The cold storage facility at 105-137 Magnesium Drive, Crestmead, is leased to Metcash.

Based on the annual rental return, the investment is trading on a 5.2 per cent yield.

The site (outlined) spreads 21 hectares.

On a 21 hectare site, the property is configured with three buildings containing a total of 89,245 square metres of area, a mix of ambient and cold storage.

Blackstone paid Goodman Group $126 million for the investment in 2006.

JLL’s Tony Iuliano, Adrian Rowse and Gary Hyland represented Blackstone to dispose of it.

Metcash controls brands including IGA and IGA Express, Thirsty Camel, Cellarbrations, Campbells Cash & Carry and Campbells Wholesale.

Metcash occupies the Crestmead cold storage investment, paying annual rent of about $9.464 million – which JLL said is less than the market income ($10.3m).

Last June, Charter Hall signed Metcash on as a tenant for a purpose-built, 31,000 sqm industrial facility at the Motorway Industrial Park in Berrinba, about 34 kilometres south-east of the Brisbane CBD.

The Berrinba property is for Metcash’s hardware arm which controls brands Home Timber & Hardware, Hardings Hardware, Thrifty Link Hardware and True Value Hardware.

Elsewhere in the city, two Charter Hall funds in June paid Queensland Treasury Corporation $102.5 million for the Brisbane City Council Bus Network Terminal at Eagle Farm.

Blackstone is selling the Crestmead investment to Charter Hall for about $180 million.

In May, Charter Hall’s Direct Industrial Fund spent $29.5 million on an industrial investment in Melbourne’s Altona.

Late last year Charter Hall paid Village Roadshow $12.5 million for the Coburg Drive-in Theatre, a site which has longer term industrial redevelopment potential.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of