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Charter Hall Group (Charter Hall or the Group) today announced that it has purchased two high quality, government-leased industrial assets in South Australia for over $100 million.
Charter Hall-managed fund DIF4 has acquired a brand new institutional grade office and warehouse property in Gepps Cross for $30.7 million at an initial yield of 4.9%. Purpose-built for SA Health, the asset is 100% occupied by the government organisation with a 15-year net lease with fixed reviews, providing stable income growth over the investment horizon.
Charter Hall Direct Fund Manager, Julian Menegazzo, said, “We are pleased to be expanding DIF4’s spread to prime, modern industrial real estate, with the addition of a high quality, purpose-built asset leased to the South Australian government, which is a major tenant customer across our Industrial & Logistics and Office portfolios in metropolitan Adelaide. Gepps Cross is a prime industrial area in Adelaide and extremely well-positioned with respect to the arterial road and freight network. This acquisition is in line with our strategy and will provide us stable income growth and is nearby to other major Charter Hall modern assets leased to Metcash and Schneider.”
Charter Hall Prime Industrial Fund (CPIF) has acquired an industrial complex at Netley Commercial Park for $71.3 million, reflecting an initial yield of 4.5%. Currently leased to the South Australian Government, the asset is underpinned by a strong tenant covenant and offers significant upside potential for redevelopment in the medium to long term. Located adjacent to the Adelaide Airport and less than 5 kilometres from the CBD, the 13.47 hectare site has three street frontages and multiple access points with excellent connectivity to the airport, CBD and consumer catchments.
CPIF Fund Manager, Richard Mason, said, “This asset aligns well with our strategy, underpinned by a government tenant and high underlying land value providing significant upside potential over the long-term. The 13.47 hectare site is one of the largest parcels of industrial zoned land in the vicinity, with scale that is increasingly rare and difficult to secure in this location. It will benefit from the planned redevelopment of the Airport East Logistics Hub, with a number of tenant customers expressing interest in relocating to the precinct.”
Charter Hall Head of Industrial Transactions, Jack Walters, said, “These acquisitions continue to demonstrate our ability to work with our major agent relationships in an off market capacity to acquire core logistics properties, leased to high quality tenants which are situated close to major infrastructure. Since 1 July 2021, we have completed over $900 million in acquisitions in the sector, driving the Group’s Industrial & Logistics portfolio funds under management to over $17 billion.”
The transactions were brokered off market by Jack Pershouse of CBRE (Netley Commercial Park) and Andrew Zammit of Leedwell Property (Gepps Cross).