Charter Hall pick up Metcash Distribution facility from Blackstone

31 July 2019

Charter Hall will acquire the Metcash Distribution Facility in Brisbane’s south in a $183.6m deal with Blackstone. The 21 hectare site comprises a 89,245sqm of net leasable area over 3 buildings. The property is leased to Metcash and is generating a net passing income $9,463,740 per annum. The acquisition reflects a 5.15% passing yield and a 5.6% cap rate. The site has approx 11,000sqm of surplus land which could add value to the property if developed. The facility was originally developed by Goodman on behalf of Metcash who sought to consolidate their Sydney operations from five existing facilities into one large purpose-built distribution centre in Brisbane. Goodman sold the asset to Blackstone in mid 2006 for $126m. Blackstone appointed JLL to market the asset in April 2019 with the final deal to eclipse the previous largest deal we’ve recorded in Brisbane in recent years – the sale of the Coca Cola Amitl facility in Richlands. Charter Hall also acquired that asset paying $156M in May 2017, reflecting a yield of 5.2%. More recently Frasers’ sold a 50% interest in their facility in Parkinson to DWS for $134.2M on a cap rate of 5.6%. Location Plan: #CharterHall #Blackstone #Industrial