Charter Hall acquire 20ha Viridian facility Dandenong South

Charter Hall have been confirmed as the buyer for the Viridian glass manufacturing plant in Dandenong South, paying approx $100m for the 20ha site.

Viridian offered the property to the market with an 8 year triple net lease expiring May 2027. Viridian will pay an annual rental of $5,668,175 with fixed 3% per annum rental increases. The sale therefore offers Charter Hall a passing yield of 5.75%.

The site comprises 73,435sqm of lettable area and also includes a surplus land component of approx. 3.6Ha, which can be removed from the lease by the landlord by giving 12 months’ notice.

Industrial transactions of this size are few and far between this year. The latest sizeable offering was in May 2019 with the sale by Goodman of an 8.5ha site in Truganina which was acquired by Logos for $70m. Prior to that, Frasers acquired a 41ha development site in Dandenong South for $80m.

JLL acted for Viridian in the sale process.