Charter Hall Group (CHC) announced its Direct Industrial Fund (DIF) has acquired its fifth asset, the Woolworths (Masters Hardware) National Distribution Centre at 364-426 Old Geelong Road, Hoppers Crossing in Victoria, for $39.35 million. The Woolworths National Distribution Centre is located in the established industrial locality of Hoppers Crossing, approximately 20 kilometres south-west of Melbourne’s CBD, with direct access to Melbourne’s major arterial linkages and transport infrastructures, including the Port of Melbourne and Melbourne Airport. The property, which incorporates approximately 52,364 square metres of modern high clearance logistics space and 5,354 square metres of canopies and loading docks, is 100% leased to Woolworths Limited and is used as its national distribution centre for its Masters Hardware business. The property has a weighted average lease expiry (WALE) of eight and a half years and is situated on a strategic 14.5 hectare site with approximately three hectares available for expansion.
Charter Hall’s Joint Managing Director, David Harrison, said: “Acquired at an initial yield of 8.1%, today’s acquisition increases DIF’s assets under management to $155 million within the defined equity raising period and given the target fund size of $200 million, provides the potential for the fund to acquire a sixth asset. “Given the continued growth of the Australian economy and strong industrial property fundamentals, including low supply and rental growth, we anticipate the industrial market will continue to perform well,” Mr Harrison added.
The Woolworths National Distribution Centre is in line with DIF’s objective of acquiring well positioned prime-grade industrial properties with investment-grade tenants and sees the Fund’s WALE move to 12.5 years. DIF’s portfolio now comprises five prime industrial properties located in metropolitan industrial markets across New South Wales, Queensland, Western Australia and Victoria, leased to national tenants including Australia Post, Coles Group, Grace Worldwide and Toll Holdings.