This article is from the Australian Property Journal archive
CHARTER Hall’s insatiable demand for industrial assets has led it to Sydney’s Minto, where its flagship industrial fund has picked up the Toyo Tyres facility with plans to develop a logistics estate.
Spanning 76,800 sqm, the site has capacity for 41,000 of warehousing facilities with the potential to cater for tenancy requirements between 5,000 sqm and 20,000 sqm.
The $8.5 billion wholesale industrial and logistics fund, Charter Hall Prime Industrial Fund (CPIF) bought the brownfield redevelopment site on a 12-month sale and leaseback to Toyo Tyres for $75.3 million, reflecting a holding yield of 3.3%.
“The acquisition is in line with CPIF’s strategy of having high-quality assets located in key eastern seaboard markets,” said the fund, which now has a $2.1 billion development pipeline.
“The site is located in the tightly held and established Sydney industrial market of Minto, where the prospects for rental growth are considered strong due to the land-constrained nature of the surrounding precinct.”
Tony Crabb, national director of research at Cushman & Wakefield, told Australian Property Journal‘s Talking Property podcast that underlying demand for industrial real estate will continue to increase, underpinned by e-commerce, food storage, manufacturing, last-mile logistics, and now data centres.
CPIF fund manager, Richard Mason said the acquisition enables the fund to strategically develop new, high-quality industrial facilities in a strong performing market and provide enhanced returns for CPIF investors.
Located 55 kilometres southwest of Sydney, the site is strategically positioned close proximity to the Campbelltown CBD and the future Badgerys Creek Airport, and offers access to the Hume Motorway, with links to major freight corridors including the M5 Motorway and M7 Motorway.
It is also near Charter Hall-managed sites including Minto Logistics Hub, Minto Distribution Centre and Cospak at 1 Culverston Road, and tenants include Prixcar, Pact Group and CEVA Logistics.
“With vendor Toyo Tyres continuing to occupy the property under a 12-month sale and leaseback, the fund will benefit from holding income while redevelopment designs are finalised and planning approvals are procured,” Charter Hall industrial & logistics CEO, Richard Stacker said.
The transaction was brokered by Colliers’ Gavin Bishop and Sean Thomson.
Charter Hall has been a major player in the huge rush towards industrial and logistics assets since the beginning of the pandemic. This month is bought two South Australian government-leased facilities in Adelaide for over $100 million, taking its acquisitions in the sector to nearly $900 million in just over three months, following $2.7 billion of purchases in the 2021 financial year.
Among those were several sale and leaseback deals, such as a portfolio of 25 cold storage and food distribution centres in a $270 million deal with PFD Food Services and a pair of Patties Foods sites Victoria for $141 million
