The joint venture between Charter Hall Prime Industrial Fund and Core Logistics Partnership will see the two funds acquire a 16.7-hectare site at Smeaton Grange in Sydney’s south-west. Previously owned by Frasers Property Australia, the Coles distribution centre located 80 Hartley Road includes a high clearance warehouse, office accommodation, drive-around truck access and 436 car parking spaces.
"This off-market acquisition within the tightly held Sydney logistics market demonstrates our ability to leverage relationships across the real estate sector to secure assets in a highly competitive market," Charter Hall Managing Director David Harrison told told Fairfax Media.
The logistics facility is very well positioned, with strong motorway connectivity and an opportunity for potential warehouse expansion.
Investors Are Backing the Distribution Centre Market
As e-commerce grows and our retail spaces becomes digital, purpose-built distribution centres are becoming increasingly valuable assets for both local and international investors.
This Smeaton Grange site, for example, becomes the fourth asset to be purchased by the joint Charter Hall fund, including a recently purchased 6.5 hectare Eastern Creek site which is to be developed into a $70m logistics facility.
"The acquisition of this modern, strategically located facility further strengthens Charter Hall's cross-sector relationship with Coles and Wesfarmers," Mr Harrison added.
In May this year, Charter Hall purchased a $100m Woolworths logistics facility in Laverton, whilst other majors players like Logos and Frasers continue to compete for valuable industrial land in fringe suburbs like Truganina in Melbourne, and emerging industrial precincts like that in Brisbane’s southside.
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