GPT pays Charter Hall $127.6m for Truganina industrial investments, land

The investment component of GPT’s outlay includes three buildings – a cold storage facility and two distribution centres – with a total 44,137 square metres lettable area.

Charter Hall has sold part of its Drystone Industrial Estate in Melbourne’s west Truganina to The GPT Group for $120 million – a deal reflecting a 4.19 per cent yield or as the marketing agents put it “a new benchmark within the national industrial logistics landscape”.

GPT is picking up three investments covering 9.4 hectares or just over 10 per cent of Drystone Industrial Estate. It is also buying two blocks of land covering 2.4ha.

The institutional giants are also trading two neighbouring tracts, a total 2.35 hectares, for $7.6m.

Following settlement, the purchaser will hold close to $3 billion worth of this kind of stock – a mix of income producing assets and land.

Elsewhere in Truganina, this includes a 32.7ha farm which cost $34m in July and the Gateway Logistics Hub, which GPT has been progressively finding tenants for including earlier this year, Godfrey Hirst and Petstock.

Charter Hall also controls substantial local investments – amongst them c145,000, pre-committed since 2019, at the 60ha Midwest Logistics Hub.

The Drystone Industrial Estate component

GPT is purchasing a 9.4ha piece – about 10 per cent of the area – of Drystone as part of its $120m outlay (story continues below).

This component includes three prime grade buildings – a cold storage and two distribution centres – with a total 44,137 sqm of area, constructed between 2015-2019 by Charter Hall managed Core Logistics Partnership (which yesterday announced it spent $70m on a 1.9ha Bunnings outlet to repurpose as a logistics focused industrial estate).

The investments are fully occupied to five tenants; the Weighted Average Lease Expiry, according to the buyer, is 8.2 years.

They were marketed by JLL’s Tony Iuliano and Adrian Rowse.

GPT chief executive officer Bob Johnston said the three Truganina assets fell consistent with the group’s strategy “to grow our exposure to the logistics sector and complement our significant logistics development pipeline which has an expected end value of approximately $1b”.

Also this week the group banked $584.6m selling a quarter of a Sydney CBD multi-building office complex to a co-owner, Lendlease.

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Marc Pallisco

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

Marc Pallisco