Investec takes most of Charter Hall Industrial Portfolio

4 October 2019

Investec have agreed to pay Charter Prime Industrial Fund approx $81m for three industrial assets across WA, NT and SA.


The unlisted Charter Hall Fund put a portfolio of 5 industrial assets worth $230m on the market in July with suggestions that Dexus were the key bidder. The result of the sale process is that Investec have acquired 3 of the assets with the remaining two assets unsold.


The three assets at 16 Dawson Street East Arm NT, 103 Welshpool Rd Welshpool WA and 46 Grand Trunkway Gillman SA were sold an at average yield of 7.3%.


One of the remaining assets in the portfolio is a 5ha parcel of land in Chullora which contains a 33,739sqm warehouse leased to Volkswagen Group Australia on a 5 year lease. CMA estimate this asset is likely to be priced in excess of $105m on a 6% yield.


Investec advised that the property, which had an unusually high proportion off office space represented a high re-leasing risk if Volkswagen vacated. Investec elected not to take the fifth asset, in Kewdale, due to a relatively short lease term.


The portfolio was marketed by JLL.