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Charter Hall looking to add to its industrial portfolio

Amidst increasing attention in the industrial sector, Charter Hall is looking to acquire the Crestmead Distribution Centre in Queensland. The property is occupied by Metcash as a key distribution facility for South East Queensland. Charter Hall is looking to acquire the site from Blackstone for $183.6M and is expected to place it in the Charter Hall Prime Industrial Fund (CPIF). The proposed acquisition will reflect a 5.15% passing yield and continues Charter Hall’s string of recent acquisitions in the industrial sector. The property was originally developed by Goodman Group, with Blackstone acquiring the asset in 2006 for $126M.

Located on 105-137 Magnesium Drive in Crestmead QLD near the Logan Motorway the property is the main logistics precinct in South-East Queensland. The 21ha site is leased to Metcash across three buildings with GLA of 89,254sqm on 10-year lease supported by 3% annual fixed rent reviews. Additionally, there is potential value to be generated due to the surplus land of 11,000 sqm.