This article is from the Australian Property Journal archive
CHARTER Hall Long WALE REIT has sold off an industrial facility in Brisbane’s Willawong for $38.73 million to tenant Grace Worldwide.
The record management, removals and storage company has 5.3 years remaining on its tenure at 420 Sherbrooke Road in Brisbane’s south.
Grace Worldwide has exercised its right to purchase the property as part of its lease agreement.
It is the only property in the Charter Hall fund that has a call option.
The facility was built in 2011 and has a gross lettable area of 22,108 sqm on a 3.9-hectare site.
“This transaction provides the REIT a good opportunity to reinvest the proceeds of this sale into a longer WALE property consistent with the REIT’s long WALE strategy,” fund manager, Avi Anger said.
The deal will not impact on its prior FY 18 earnings guidance.
Charter Hall Long WALE REIT acquired the Virgin Australia headquarters in Brisbane’s city fringe suburb of Bowen Hills over the summer for $94.1 million.
According to Savills research, local REITs were the most active type of purchaser in Brisbane’s industrial market over the 12 months to the end of March, accounting for 30% of sales.
Australian Property Journal
