The Charter Hall Prime Industrial Fund (CPIF) has sold an industrial unit complex in Chatswood for $73m.
The Eastern Valley Estate is located on a high profile 12,170sqm site on the corner of Eastern Valley Way and Smith Street, a short 2km north east of the Chatswood Regional Centre and 10km north of the Sydney CBD.
The property features a modern, industrial unit complex over two levels with a total gross lettable area of 12,748sqm. In recent years the estate has transformed into a quasi bulky goods centre with occupants including Petbarn, The Good Guys, Baby Bunting and Super Cheap Auto occupying prominent tenancies, however with other major office tenants recently vacating, the property is now 40% vacant.
Nearby, Woolworths has begun construction on a new $30 million shopping centre on a site at 17 Smith Street. The new development will be home to a 4,000m2 Neighbourhood Centre incorporating a full-line modern Woolworths Supermarket and online Drive Thru, Pick Up facility, BWS, specialty tenancies and parking for more than 200 cars. That Development requires improvements to the intersection of Smith Street and Eastern Valley Rd (adjacent to the Eastern Valley Estate) and includes the provision of a bus bay and shared cycle path.
To facilitate those works Charter Hall entered in an agreement with Fabcot (Woolworths development arm) in 2018 to acquire part of the Easter Valley Way site (apporx 688sqm in size), and to undertake the works and dedicate the land to Council. The subdivision was approved by Council and registered in early 2022. Fabcot paid Charter Hall $1.4m for the land which settled on the 7th March.
Charter Hall are remaining tight lipped on the transfer of the balance of the site for $73m which settled on the 9th March. Title records reveal The Trust Company is noted as the purchaser. The Trust Company act as custodian for several of Charter Hall’s fund including CPIF and the Charter Hall Long Wale Hardware Partnership (LWHP) Fund. The LWHP Fund owns an adjoining at site on the corner of Gibbes & Smith Streets which contains a 11,525sqm Bunnings Warehouse. We expect this Fund to be the purchaser of the CPIF site providing the Hardware Partnership Fund the flexibility to expand the Bunnings tenancy or reconfigure the site.
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