Charter Hall and its wholesale industrial partnership with Dutch pension fund PGGM have bought a brownfield industrial site in Brisbane for $60 million, reflecting a 4.4% equated yield.
The 1.56-hectare site was located at 66-98 Montpelier Road in Bowen Hills – about 2.5km northeast of Brisbane’s CBD.
The site offered 120 metres of street frontage and 9,534 sqm of gross lettable area across four buildings.
The industrial property currently had tenants including Sime Darby, Tradelink and Mine Site Technologies, presenting a weighted average lease expiry (WALE) of 4.4-years with minimum annual rent reviews of 3%.
“This Bowen Hills property is a strategic inner brownfield asset surrounded by high quality residential and commercial uses and has potential to be developed into higher and better uses in the medium term,” Charter Hall Chief Investment Officer Sean McMahon said.
“This site is also well positioned for last mile or multi-level strategies in the future, providing multiple redevelopment scenarios.
“This acquisition diversifies CHPIP’s partnership nationally, with high profile tenant customers such as BMW, Coca Cola, Mazda, CEVA, Ingham’s and Australia Post.”
The Charter Hall and PGGM partnership started in 2019 and had invested in ‘land-rich’ assets with redevelopment prospects and strong market fundamentals.
The partnership’s portfolio had expanded to about $560 million and was currently performing due diligence on the $1.6 billion Irongate portfolio.
Blue Commercial secured the off-market deal.
Investors have been betting big on Queensland’s industrial property market lately.
Last week, Fund manager Clarence Property bought an industrial land estate in outer Brisbane from Multeem for $30 million, while Harmony Property Investments purchased a portfolio of three industrial properties in Brisbane’s north from BFJ Property for about $24 million.
Last December, Gateway Capital purchased an industrial site in the Brisbane suburb of Acacia Ridge for $28 million, as SC Capital Partners bought an 8,600 sqm industrial asset on the Gold Coast for $23 million.
Outside of Queensland, Sector Property Group acquired a 6.19-hectare land parcel in Melbourne’s western suburb of Altona for about $25 million last month, while Ascot Capital purchased a distribution centre near Albury–Wodonga in Victoria for about $11 million.
Last month, a Charter Hall fund bought an SPC industrial property in Shepparton, Victoria for $66 million, and Logos, KKR and Mubadala Investment bought industrial development sites in Sydney and Melbourne worth a combined end value of $640 million.
In January, Centuria Industrial REIT acquired a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane worth a combined end-value of $132 million, following its purchase of four industrial properties across Sydney, Melbourne and Brisbane for $129 million last November.
Earlier this month, Colliers Managing Director for Industrial Gavin Bishop said there was an estimated $50 billion worth of capital seeking investments in Australia’s industrial property market.