Stockland sells Perth dairy distribution centre to Charter Hall for $63.5m

The Brownes Dairy factory includes about 2.1 hectares (highlighted yellow in this CBRE marketing image) which can be developed.

Stockland is selling a dairy distribution centre investment north of Perth to a Charter Hall unlisted direct property fund for $63.5 million.

The deal for the two Balcatta properties – 22 Geddes Street and 20 Kenhelm St – is being struck on a circa-six per cent yield.

Across 10.2 hectares, and also with substantial frontage to Reid Highway, the asset contains 26,392 sqm of area configured as a head office, processing plant and warehouse.

A 2.1ha portion (marked yellow in image, right) could be developed.

Brownes Dairy, a business which Archer Capital sold in 2017 to China’s Shanghai Ground Food Tech, is committed for 13.9 years.

CBRE’s Chris O’Brien and Colliers International’s Gavin Bishop represented Stockland which paid $53.5m in mid-2014.

Balcatta is about 12 kilometres from the city.

Two institutional titans keep pandemic deals coming

Charter Hall has been one of the country’s most active property purchasers over the past 24 months – and despite the COVID-19 conditions (story continues below).

Yesterday we reported it is in negotiations with GIC to buy a $1 billion, 49pc stake in 250 Australian petrol stations, from Ampol.

Last month it paid Owens-Illinois Australia $214.9m for warehouses in Sydney’s Penrith, and Melbourne’s Spotswood, on a leaseback.

Not long earlier Charter Hall gave Qube $207m for a 30ha car storage and distribution facility in Minto, south west of the New South Wales capital.

Five weeks ago it traded two shopping centres in that city to Primewest for a total of $91.5m.

Stockland, similarly, has been adding to its portfolio – two weeks ago announcing it would acquire the Macquarie Park, Sydney, headquarters of Johnson and Johnson and develop that vendor a replacement in the area.

In March it paid poultry entrepreneurs the Baida family’s Celestino Properties $415m for an undeveloped 196ha Box Hill site, north west of the city.

Its chief executive, Mark Steinhart, resigned eight weeks ago.

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Marc Pallisco

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

Marc Pallisco