Property Development

Charter Hall spends $29.5 million on Altona logistics centre

Charter Hall spends $29.5 million on Altona logistics centre
Written by The ReReport
As seen in the Source link, written by realestatesource.com.au on 2019-05-21 09:29:15

EXCLUSIVE

Charter Hall’s Direct Industrial Fund 4 is outlaying $29.5 million for a high-profile logistics centre in Melbourne’s west.

The Altona site at 28-30 Marshall Court is fully leased to Rays Outdoors Limited which pays annual rent of $2.13 million, with fixed annual rent reviews of 2.5 per cent, on a lease expiring in 5.6 years.

On that basis, the asset, 13 kilometres from the city, is
selling on a passing yield of 7.2 per cent.

Rays Outdoors Limited, which is owned by ASX-listed Super
Retail Group, has a five-year renewal option beyond 2024.

The site has more than 240 metres of frontage to the Princes Freeway.

The property contains 20,200 square metres of building
area, configured as industrial and office, and spreads over a 4.2 hectare site
which the marketing agents said offered development potential.

It has more than 240 metres of frontage to the busy
Princes Freeway.

Vinci Carbone’s Frank Vinci and Joseph Carbone listed the
site last October.

“The facility also benefits from reduced leasing risk
being a high-quality generic logistics facility situated in a prime location
within the highly sought-after Melbourne west industrial market,” Charter Hall Direct
head Steven Bennett said.

Charter Hall said its DIF4 provides exposure to a portfolio
of eight directly owned industrial and logistics assets as well as an investment
into a Charter Hall wholesale diversified industrial partnership, providing a
geographically dispersed portfolio throughout Australia.

On a 4.2 hectare block, the property contains office and warehousing area of 20,200 square metres.

“The property is situated within a prime location with
direct access to the Princes Freeway via the Kororoit Creek Road on-ramp and is
within one kilometre from the Altona Logistics Intermodal terminal, which is
part of the Victorian government’s strategy to have an integrated rail system
between the Port of Melbourne and three key industrial areas (Altona, Lyndhurst
and Somerton,” a company announcement about the Marshall Court deal, said.

“The Altona/Laverton North industrial area is a strategic industrial area of Melbourne which benefits from its proximity and accessibility to Melbourne CBD, Port of Melbourne, Tullamarine Airport and major infrastructure including key transport linkages”.

Following the Altona purchase, DIF4 has $387 million of funds under management. This is expected to grow to over $500 million, the company said, “as additional equity is raised and deployed”.

Charter Hall has been an acquisitive player of late. Many of its recent property purchases are detailed in this item we ran earlier this month about it buying 737 Bourke Street, Docklands.