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Charter Hall has continued its focus on growing and diversifying its industrial and logistics platform securing a new major pre-lease at its Drystone Industrial Estate.
Charter Hall (the Group) has announced that it has extended its relationship with Wesfarmers subsidiary, Target Australia Pty Ltd, to develop a new warehouse and distribution facility in Melbourne’s industrial suburb of Laverton North.
The new Target facility will comprise a warehouse facility of 63,000sqm situated on a substantial land parcel of approximately 13 Ha. The new development, to be constructed by Commercial and Industrial Property (CIP), is designed to be a generic cross dock operation with a combination of both on-grade and recessed docks and approximately 53,000sqm of hardstand area.
The facility is anticipated to be completed by December 2016 and provides an initial lease term of 10 years and will have an on completion value of approximately $75 million.
Charter Hall’s Head of Industrial, Paul Ford, explained that the Group had partnered with CIP to deliver a tailored solution to suit the customer’s needs, providing a one-stop-shop development solution.
“Target is a major tenant customer across the Group’s retail portfolio and we are focused on expanding and strengthening the relationship with them across both our retail and industrial and logistics businesses".
“Charter Hall’s industrial platform comprises a strategic national footprint of development sites where pre-leasing may extend the platform by a further $900 million or 700,000sqm on a fully developed basis, providing the scale and flexibility to satisfy a large number of existing and new customer requirements”, Mr Ford added.
Drystone Estate is quickly becoming the preferred home to companies who require large industrial and logistics footprints with ease of access to major arterial networks. Companies including Target, The Reject Shop, Woolworths and Laverton Cold Storage have all established logistics facilities within the new Estate.
Located within 20 kilometres of Melbourne’s CBD and within close proximity to the Western Ring Road Motorway, West Gate Freeway and Princes Highway, Drystone Estate has an estimated fully developed value of $440 million.
CIP will design and construct the new Target facility and is also partnering with Charter Hall to deliver the 38,000sqm The Reject Shop facility due for completion in September 2016.
CIP Managing Director, Paul McKenna said: “CIP in partnership with Charter Hall is pleased to welcome the third pre-lease tenant to Drystone Industrial Estate. The new road link currently under construction linking Doherty’s Road and Leakes Road provides significant logistic flexibility and efficiency to prospective tenants. We look forward to working closely with Charter Hall and Target to design and deliver another significant project that meets all stakeholder expectations.”