Fund manager Charter Hall and its Dutch PGGM partner has acquired a 1.56ha logistics park in Bowen Hills.
The property, at 66-98 Montpelier Road, 2.5km north-east of Brisbane’s CBD, is currently used for last-mile logistics solutions by tenants Sime Darby, Tradelink, Mine Site Technologies and Corporate House Services.
The dense industrial park, sold on a weighted average lease expiry of 4.4 years, comprises four buildings and 9500sq m of gross lettable area.
It was secured by Charter Hall in an off-market deal through Blue Commercial, reflecting a 4.4 per cent equated yield.
Charter Hall said the site represented an “attractive, land-rich investment” in one of the country’s key last-mile markets and that it had been drawn to the location due to its long-term redevelopment opportunities with mixed-use zoning.
“This Bowen Hills property is a strategic inner brownfield asset surrounded by high quality residential and commercial uses and has potential to be developed into higher and better uses in the medium term,” Charter Hall chief investment officer Sean McMahon said.
“[It] is also well positioned for last mile or multi-level strategies in the future, providing multiple redevelopment scenarios.”
Charter Hall’s recent strategy has been a capital-light approach, working with equity partners such Dutch pension fund giant PGGM or Singaporean sovereign wealth fund GIC to source and manage property assets.
Charter Hall partnered with PGGM in late 2019, initially targeting $800 million in core land rich investments and selective stabilised assets together with brownfield and value-add opportunities.
The Bowen Hills deal now increases the value of Charter Hall’s industrial property partnership with PGGM to $560 million.
The partnership has been actively targeting a combination of core land rich investments and selective stabilised assets together with brownfield and value add opportunities including develop to core strategies since late 2019.
So far, its acquisitions include a prime industrial investment in Melbourne on a 20-year sale-and-leaseback basis for $87 million and the acquisition of a 30ha car distribution centre—with development potential— in Minto, in Sydney’s west.
The $207-million Minto acquisition was bought in a joint venture with another Charter Hall-run vehicle, its $6-billion Charter Hall Prime Industrial Fund.
In the 2020-2021 financial year, Charter Hall’s managed funds rose by $11.7 million to $52.3 billion and, following further acquisitions and asset revaluations, reached $61 billion by December 31.
Article Source: www.theurbandeveloper.com
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