Charter Hall funds acquire a $207 million 30 hectare industrial investment in Southwest Sydney

Charter Hall Group is pleased to announce that the Charter Hall Prime Industrial Fund (CPIF) and another Charter Hall managed global institutional partnership have each acquired a 50% tenants in common title in a fully leased freehold industrial investment with a site area of 30.6 hectares, for a total consideration of $207 million reflecting an initial yield of 4.76%. The property has been acquired from the ASX listed Qube (ASX:QUB) and is subject to Foreign Investment Review Board approval.

The property is situated at Culverston Road, Minto in south-west Sydney and comprises a total site area of 30.6 hectares of predominantly cleared level land improved by an asphalt road base with sailed hail-nettings utilised as car import, storage and distribution facility. The property is fully leased to four key automotive logistics tenants being Mazda, CEVA, PrixCar and Dial A Tow with an average lease expiry or WALE of 4.2 years.

The site has a State Significant Development Approval (SSDA) for up to 112,000 sqm of warehouse development and approval for a rail siding on the site which provides connectivity to the Southern Sydney Freight Line which runs parallel to the eastern boundary enabling the development of an intermodal rail terminal.

Charter Hall Industrial & Logistics CEO, Richard Stacker, said

“The property presents a unique opportunity to acquire a rare 30.6 hectare benched, serviced and zoned industrial development site in a core Sydney industrial precinct, with a staggered lease profile which provides holding income and enables a potential stage build out into a key logistics and intermodal facility.”

“The construction of Sydney’s second international airport at Badgerys Creek, major Federal and State Government infrastructure spending in Western Sydney and the streamlining of supply chains continues to drive the demand for well-located logistics facilities in Western Sydney.”

Minto is well located with excellent access to the Sydney orbital network and key freight corridors, including the Southern Sydney Freight Line, the M5 Motorway, M7 Motorway and Hume Highway.

Charter Hall CIO, Sean McMahon, said

“The acquisition of the Minto property further upweights the Group’s $10 billion plus logistics portfolio to Sydney and extends existing tenant relationships with Mazda, CEVA and PrixCar. Both CPIF and the institutional partnership have core and develop to core strategies, with this site providing short and longer-term develop to core opportunities with a spread of lease expires.”

Charter Hall Group MD and CEO, David Harrison, commented

“we are extremely pleased to consummate this transaction with Qube. It further highlights our capacity to deliver transactions within timeframes expected of vendors. As with most vendors we have dealt with, we hope to do further business with Qube after closing this transaction efficiently and within their timeframe expectations.”

“This acquisition, combined with recently announced logistics transactions, grows our Industrial and Logistics portfolio by $1 billion since the start of June, further extending our strategy of becoming a leading player in the Australian industrial market”

said Mr Harrison.

Announcement Authorised by the Chair and the Managing Director and Group CEO

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