Charter Hall spends $207m on strategic Minto industrial site
Charter Hall Prime Investment Fund (CPIF) with a Charter Hall Group managed global institutional partnership has acquired a 30.6 hectare investment with enormous development upside in Sydney’s south west Minto.
The Culverston Road property will be controlled equally.
The $207 million purchase from ASX-listed Qube is being struck on a 4.76 per cent yield.
It is also subject to Foreign Investment Review Board approval.
Minto property earmarked for intermodal logistics centre…
Bound by Airds Road, Rose Payten Drive and the Southern Sydney Freight Line, the parcel is utilised as a car distribution centre and fully tenanted to four groups: CEVA Logistics, Dial A Tow, Mazda and PrixCar.
It is predominantly a cleared, flat block with asphalt road and sail-hail netting.
Importantly, the property carries State Significant Development Approval allowing up to 112,000 square metres of warehousing.
A rail siding connecting the block to the freight line has also been given the tick as part of that permit.
…to be developed in stages
Charter Hall Industrial and Logistics chief executive officer, Richard Stacker, said “the property presents a unique opportunity to acquire a rare 30.6ha benched, serviced and zoned… development site in a core Sydney industrial precinct, with a staggered lease profile which provides holding income and enables a potential stage build out into a key logistics and intermodal facility.”
“The construction of Sydney’s second international airport at Badgerys Creek, major federal and state government infrastructure spending in Western Sydney and the streamlining of supply chains continues to drive the demand for well-located logistics facilities,” the executive added (story continues below).
As well as the Southern Sydney Freight Line, Minto is close to the M5 and M7 motorways and Hume Highway.
Charter Hall owns $10b-plus of Sydney logistics property
Charter Hall chief investment officer, Sean McMahon, said the Minto acquisition “further upweights the Group’s $10 billion-plus logistics portfolio to Sydney”.
It also extends existing relationships with three tenants: CEVA Logistics, Mazda and PrixCar.
“Both CPIF and the institutional partnership have core and develop to core strategies, with this site providing short and longer-term develop to core opportunities with a spread of lease expires,” the executive added”
…and has spent $1b since June on its industrial portfolio
Charter Hall Group managing director and chief executive officer, David Harrison, said the Minto transaction “further highlights our capacity to deliver transactions within time-frames expected of vendors.”
“As with most vendors we have dealt with, we hope to do further business with Qube after closing this transaction efficiently and within their timeframe expectations.
“This acquisition, combined with recently announced logistics transactions, grows our Industrial and Logistics portfolio by $1b since the start of June, further extending our strategy of becoming a leading player in the Australian industrial market”.
Last month CPIF outlaid $115m on an 8.3ha factory in Erskine Park, about 35km north of Minto and, with Allianz Real Estate, paid Aldi $648m for four distribution centres on Australia’s east coast.
In May, it committed Coles to two distribution centres – one in Sydney’s Wetherill Park and the other at Melbourne’s Truganina and an estate it also snared Uniqlo and Bridgestone.
