Charter Hall Group has announced the acquisition and settlement “off-market” of 17 assets over the past 3 months totalling more than $560 million located within prime industrial precincts across the eastern seaboard.
The significant volume of off-market acquisitions completed by Charter Hall’s transaction team in the last quarter follows the $2.7 billion of Industrial and Logistics assets during Financial Year 20/21.
The majority of assets purchased are leased stabilised assets, underpinned by high-quality tenant covenants, with long lease terms ranging up to 16.9 years, all of which are well-located in large industrial precincts with proximity to major infrastructure and metropolitan areas. The average WALE of stabilised assets approximates 10 years. Within the recent $560 million of acquisitions, Charter Hall has purchased a number of development sites, which will bolster its development pipeline including stabilised assets with surplus land for expansion/development.
Charter Hall Managing Director and Group CEO, David Harrison, said, “These acquisitions build on our strong momentum in acquiring high-quality industrial assets in prime locations across Australia. The volume and scale of these acquisition speaks to the unmatched capability of our elite transaction team. We continue to lead the Australian market in deal volume, and our ability to secure high-quality assets off-market continues to deliver long-term value for the business and superior outcomes for our capital partners and investors.”
According to Charter Hall, major tenant customers secured with the latest acquisitions include Australia Post, Toll, Kmart, Border Express, Cleanaway, Zirconia (Iron Mountain) and State government agencies.
Charter Hall Industrial and Logistics CEO, Richard Stacker, said, “The breadth and diversity of our fund capital provides the capacity to act quickly and execute in line with vendor expectations. With a further $3 billion of investment capacity together with a captive development pipeline, we would expect our $16 billion industrial portfolio to grow beyond $20 billion over coming years.”
Further Information
According to our RESourceData records, Charter Halls’ Industrial acquisitions reported over the past quarter include;
- 46 Bald Hill Road Pakenham from Patties Foods for c$18m
- 169 Princes Highway Bairnsdale from Patties Foods for c$123m
- 25 cold store and food distribution centres in a sale and lease back from PFD Foods for $269m
- 1061 Mountain Highway Boronia from GlaxoSmithKline for $106m
- 29 Ron Boyle Crescent Carole Park for $83.1m
Many of the PFD Food store assets are located in regional country areas and are may prove difficult to re-lease if the tenant did not renew the leases, however with a 13.8yr average lease expiry, there is likely to be time to amortise the improvements back to land value over the remaining term of the lease.
None of the these assets are leased to the Tenants Charter Hall mentioned in their press release, however our records indicate that those tenants were part of assets acquired in previous periods. We will ask Charter Hall to clarify.
Disclaimer: The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Related Articles
