Charter Hall spends $66.9m on warehouses

The Wetherill Park waste-to-energy plant.

Charter Hall has added two east coast industrial investments to the Long WALE REIT (CLW).

The Brendale property, about 20 kilometres north of Brisbane.

In the biggest deal, the manager is paying an MFS Harmony syndicate $34.6 million for the Wetherhill property which was, when it was completed in 2018, Australia’s largest waste-to-energy plant.

The 2.06 hectare property, 35-37 Frank Street, contains an 8516 square metre facility purpose-built for the tenant, a joint venture between Cleanaway and ResourceCo.

Based on the asset’s annual net income, the purchase price reflects a 4.3 per cent yield.

The Weighted Average Lease Expiry is 16.8 years; with options the occupier can stay until 2048.

Wetherill Park is about 28 kilometres west of Sydney.

45 South Pine Road, Brendale

Meanwhile in Brisbane’s north Brendale, Charter Hall is outlaying $32.3m for a logistics facility (pictured, top) occupied by Modern Star, which provides education resources to early learning centres and schools.

On 2.69 hectares, 45 South Pine Road contains an 18,255 sqm improvement, with an office, showroom and warehouse (story continues below).

There are also 120 car parks.

This deal is being struck at a 5.5pc initial return.

The property’s WALE is 7.9 years.

Colliers’ Simon Beirne, Anthony White and Sam Reilly were the agents.

The acquisitions come on the day Charter Hall announced a $1.68 billion takeover bid for Australia’s biggest listed hotel landlord, ALE Property Group.

If successful, CLW will hold a 50pc stake in the portfolio of 78 pubs, the majority of which are on the east coast.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.