GWA signs, resets leases, for three Charter Hall warehouses on Australia’s east coast
EXCLUSIVE
One hand is washing the other – metaphorically – following a unique agreement between Charter Hall and GWA Group Ltd – the producer and distributor of Caroma tap wear.
Charter Hall has committed and reset leases with GWA for three office warehouse facilities, in Sydney, Melbourne and Brisbane, containing a total area of 51,982 square metres.
The parties have not disclosed the initial rental rate or terms, including incentives.
But coinciding with the deal, Charter Hall said it will use in its upcoming developments Caroma fixtures and products – the Intelligent Bathroom Management System and Smart Command, amongst them.
Charter Hall develops industrial, retail and social infrastructure real estate.
In October it pre-committed Australian Federal Police for 30 years to an unbuilt Melbourne CBD office.
“Our initial relationship commenced with GWA via a sale and leaseback purchase of an asset in Western Sydney and since then we have built a solid partnership based on mutual respect and trust,” Charter Hall Industrial and Logistics chief executive officer, Richard Stacker, said.
“This relationship demonstrates Charter Hall’s commitment to developing an active partnership with its tenant customers across its platform”.
Caroma recently provided fixtures, and some of its high-tech commercial bathroom management systems, in Charter Hall’s Sydney head office.
The GWA properties
Sydney
In Sydney, GWA has re-committed to a modern 31,032 sqm warehouse and office at the M5/M7 Logistics Park in Prestons, about 37 kilometres south west of the CBD.
GWA only moved into this complex in April, 2018.
Charter Hall has reset the lease period for 10 years.
“The warehouse initially included a logistics centre, research and development lab, product development and quality assurance facilities for testing new products on site,” Mr Stacker said.
“As part of GWA’s national property strategy to centralise their customer service and accounts staff, Charter Hall was able to develop an innovative solution by recently adding an additional 810 sqm office extension to accommodate the…staff, at the same time re-setting the lease”.
Melbourne
GWA has also leased a new facility in Melbourne – a 12,640 sqm warehouse and office at Derrimut’s Parkwest Industrial Estate.
Derrimut is about 17 kilometres west of the city .
Charter Hall has signed GWA up for seven years.
“Due to GWA’s continued growth, they have relocated to this larger facility for the warehousing and distribution of all bathroom products including their Methven taps and shower products,” Mr Salt said.
“GWA selected Parkwest Industrial Estate due to its location and convenient access to Melbourne’s major arterial network”
Brisbane
The smallest facility is also the newest, in Brisbane, part of the Tradecoast Industrial Park at 200 Holt Street, Pinkemba.
Only completed last month, the 7520 sqm warehouse and office has been rented to GWA for eight years.
Charter Hall is planning to construct about 28,000 sqm within three buildings on its 200 Holt Street parcel. It controls two other industrial assets in the Tradecoast business park.
Second time in a fortnight Charter Hall has reset leases
The GWA lease announcements come a fortnight after Charter Hall announced it reset rental agrements with Coles affecting two distribution centres, in Perth and Adelaide.
In that deal, Charter Hall and Coles terminated contracts set to expire over the two years from 2027.
It has now committed the supermarket giant to 15-year leases, both expiring at the same time in December, 2034.
Active partnership…
Property giants like Charter Hall would be on the radar of kitchen, bathroom and building designer businesses which distribute, like Caroma’s.
“Our partnership with Charter Hall has grown significantly,” GWA chief executive officer, Tim Salt, said.
“We have benefited from their property expertise and access to quality properties and development land across multiple locations,” the executive added.
“With GWA being a leading provider of superior and sustainable water solutions, it was also important that the buildings and their fittings delivered a strong sustainable outcomes.
“These shared values have led to initiatives such as the solar power system, which will generate 20-30 per cent of our energy requirements at our largest facility, water conservation infrastructure and on-site waste management systems that assist with waste diversion from landfill”.
Charter Hall intends to stay relevant in the industrial and logistics sector
The Sydney based fund manager and developer has had an active year developing, renting and selling warehouse product.
Its industrial and logistics portfolio – with 164 investments leased to 142 tenants – is worth $7.6 billion.
Charter Hall said this gives it a unique insight into the industrial and logistics requirements of its tenant customers.
“The rapid evolution of supply chain networks is driving the demand for real estate solutions that assist companies to streamline their operations and lower costs,” Mr Stacker said.
“As a manager and long-term owner of the properties we develop, we are focused on partnering with our tenant customers like GWA to provide flexible solutions that deliver highly efficient, state-of-the-art facilities to support their business needs”.
“We remain positive on the industrial sector. Demand is outpacing supply, pushing vacancy rates lower, and rents and values higher, particularly in the land constrained Sydney market.
“E-commerce and supply chain changes are creating strong demand for distribution centres and last mile delivery centres. At the same time, there is a wave of capital from both domestic and global investors seeking to expand their allocation to industrial property” the Charter Hall executive said.
Mr Salt added GWA’s relationship with Charter Hall allowed the business “to work in partnership to extend our new premises at Prestons to accommodate additional office staff, and in doing so, create a workspace that our people say is both productive and enjoyable to work in”.
