Charter Hall concludes $560m industrial spending spree
Charter Hall has snapped up 17 industrial assets including the landmark Port Connect Distribution Centre (pictured, top), in Lytton – from Goodman.
On the eastern sea board, the properties are costing a total of over $560 million.
Some of them are development sites
The average lease expiry on the investments is 10 years.
High profile tenants
The portfolio includes the 12.2 hectare Kmart Distribution which contains 51,289 square metres of area – inclusive of a c1800 sqm office.
Also known as the Port Connect Distribution Centre, this asset is costing around $200m on a core capitalisation rate understood to be just under four per cent.
Australia Post, Border Express, Cleanaway, Toll and Zirconia (Iron Mountain) occupy some of the other investments, as do state governments.
Charter Hall acquired the properties off-market over a three month period; there are several vendors (story continues below).
“The majority…are leased stabilised assets underpinned by high quality tenant covenants, with long lease terms ranging up to 16.9 years, all of which are well-located in large industrial precincts with proximity to major infrastructure and metropolitan areas,” a statement added.
The group outlaid $2.7 billion on industrial product in FY21.
It has a further $3b investment capacity, it added.
“The breadth and diversity of our fund capital provides the capacity to act quickly and execute in line with vendor expectations,” Charter Hall Industrial and Logistics chief executive officer Richard Stacker said.
“We would expect our $16b industrial portfolio to grow beyond $20b over coming years,” according to the executive.
More to come.
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