Acquisitive property giant Charter Hall has paid $118.5 million for two government-leased industrial investments on Australia’s east coast.
The detector dog training facilities, both occupied by Australian Border Force and Australia Federal Police, hit the market in August.
The largest facility by area, in Bulla, about 29 kilometres north-west of Melbourne, operates as the headquarters of the national dog detector program.
On a 38.5 hectare site at 180 Loemans Road (pictured, left), the complex, with nearly 8000 square metres of building improvements, was completed in 2011.
It returns annual rent from the Department of Home Affairs of $3.95 million on a lease expiring in 2036.
The land is within the buffer zone for the Melbourne Airport east-west runway, near Organ Pipes National Park.
The second property in the portfolio, in Banksmeadow, about 12 kilometres south of the Sydney CBD, contains close to 3000 sqm of buildings, spreads over a 2.3 hectare site.
Completed earlier this year, the government offered this property, 28B McPherson Street (pictured top and bottom), with a new 15-year lease to ABF, AFP and the Department of Agriculture and Water Resources. It currently generates annual rent of $2.65 million, payable by the Department of Home Affairs.
Charter Hall acquired the portfolio on a 5.57 per cent passing yield.
Last week we reported that Charter Hall had paid $140 million for the former Enterprise House office at 555 Collins Street, on the south-west corner of King Street, in the Melbourne CBD.
A week earlier we reported that the fund manager was paying $55 million for an office investment in Sydney’s Villawood, occupied by the National Archives of Australia.
In September Charter Hall paid $22 million for a hotel and retail asset, the Club Hotel, on a 1.1 hectare site in Brisbane’s Waterford West.