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Charter Hall Group (Charter Hall or the Group) today announced that its flagship $8.5 billion wholesale industrial and logistics fund, Charter Hall Prime Industrial Fund (CPIF or the Fund), has acquired a 100% interest in a large brownfield redevelopment site on a 12-month sale and leaseback to Toyo Tyres for $75.3 million, reflecting a holding yield of 3.3%.
The acquisition is in line with CPIF’s strategy of having high quality assets located in key eastern seaboard markets. The site is located in the tightly held and established Sydney industrial market of Minto, where the prospects for rental growth are considered strong due to the land-constrained nature of the surrounding precinct.
Spanning 76,800 square metres (sqm), the site provides the Fund an opportunity to develop a 41,000sqm logistics estate with the potential to cater for tenancy requirements between 5,000sqm and 20,000sqm.
Located 55 kilometres southwest of Sydney, the site is strategically positioned in close proximity to the Campbelltown CBD and the future Badgerys Creek Airport, and offers excellent access to the Hume Motorway, with links to major freight corridors including the M5 Motorway and M7 Motorway. It is also near Charter Hall-managed sites including Minto Logistics Hub, Minto Distribution Centre and Cospak at 1 Culverston Rd.
Charter Hall Industrial & Logistics CEO, Richard Stacker, said, “This acquisition provides an opportunity to continue to grow Charter Hall’s offering of high quality industrial facilities in the Minto precinct, where we already have several Charter Hall-managed industrial sites leased to tenant customers such as Prixcar, Pact Group and CEVA Logistics. With vendor Toyo Tyres continuing to occupy the property under a 12-month sale and leaseback, the Fund will benefit from holding income while redevelopment designs are finalised and planning approvals are procured.”
CPIF Fund Manager, Richard Mason said, “The acquisition adds to CPIF’s $2.1 billion development pipeline and represents an attractive brownfield infill site with holding income and proximity to large consumer markets. The acquisition enables the Fund to strategically develop new, high quality industrial facilities in a strong performing market and provide enhanced returns for CPIF investors. Building on the Fund’s strong momentum, the proposed development enables us to continue to improve the quality of CPIF’s $8.5 billion portfolio, which is the largest pure play industrial and logistics portfolio in Australia.”
The transaction was brokered by Colliers’ Gavin Bishop and Sean Thomson.