Charter Hall splashes $763m on industrial assets

ASX-listed funds manager Charter Hall Group has added to its industrial portfolio with the $115 million acquisition of a logistics property in Sydney’s Erskine Park, shortly after acquiring supermarket chain ALDI’s logistics assets in a $648 million joint venture with Allianz Real Estate.

Charter Hall today said two of its industrial syndicates had acquired a 43,000 square metre logistics facility located at 40-66 Lockwood Road from Melbourne-based firm Kador Group.

The off-market transaction, brokered by Savills, reflected a core cap rate of 4.75 per cent. 

The property was purpose built for long-term tenant Winc, formerly known as Stapes and Corporate Express, by Australand in 2008.

Winc has committed to an additional 12 year lease on the facility, with its current agreement due to expire in August.

Australand, which was acquired by Frasers Property Australia in 2014, sold the facility to Kador Group in 2009 for $43.8 million.

Charter Hall’s purchase follows it’s announcement last week that it had acquired a portfolio of distribution centres in Sydney, Melbourne and Brisbane, all leased to supermarket chain ALDI.

The portfolio, which was acquired in a 50:50 joint venture with Allianz Real Estate, comprises two facilities in the Sydney suburbs of Minchinbury and Prestons, a centre in Melbourne’s Dandenong, and an asset in Brisbane’s Brendale.

Commercial agency JLL negotiated the transaction on behalf of ALDI.

Charter Hall’s industrial and logistics portfolio is now worth in excess of $10 billion, with a pre-leased development pipeline of $1.3 billion.