Charter Hall Funds Acquire $115 million Sydney Logistics Facility
June 9, 2020 — Charter Hall has secured for its Charter Hall Prime Industrial Fund (CPIF) and Charter Hall Direct Industrial Fund No.4 (DIF4) via an off-market transaction, a $115 million logistics property at 40-66 Lockwood Drive, Erskine Park, reflecting a 4.75 per cent core cap rate.
The distribution facility has a total GLA of 43,000sqm, of which approximately 40,000sqm is used for warehouse accommodation with the remaining 3,000sqm being occupied as office accommodation. The property benefits from two truck access driveways (allowing for full drive around access), a separate access driveway into the large car park, and all-weather super awnings located along both the eastern and western elevations. The property has a site area of 8.273ha with a site coverage of 52 per cent.
The facility was originally developed in 2008 for the tenant, Winc, as their national distribution centre. Winc have entered into a new 12-year lease to commence at expiry of their current lease in August 2020. The lease provides for annual rental escalations of 3.25 per cent, with a mid-term market review in 2026.
Winc Australia, previously known as Staples and Corporate Express, is a national workspace solutions supplier of office essentials, furniture, safety equipment, IT solutions, toiletries and kitchen products. Winc’s key customers are cycle resilient industries, including corporate, healthcare, education and government. Winc is a new tenant customer to the Charter Hall industrial and logistics platform.
Charter Hall’s Industrial & Logistics CEO, Mr Richard Stacker, said “The acquisition of Winc’s Erskine Park facility is consistent with both the Group’s and Funds’ strategy to acquire core logistics properties leased to good quality tenants on long term leases situated in key industrial precincts with access to major infrastructure and transport networks.”
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