Charter Hall Snaps Up Qube’s Minto Site


Charter Hall has expanded its Australian logistics portfolio for its Prime Industrial Fund, snapping up a 30.6 hectare site in Sydney's south-west.

The fund manager picked up the industrial site at Minto from ASX-listed logistics group Qube Holdings for $210 million, reflecting an initial yield of 4.76 per cent.

The property, which is currently used to handle and store imported cars, is fully-leased after car maker Mazda committed to 107,000sq m last year with other key tenants including Ceva Logistics, Dial a Tow and Prix Car.

The industrial site, situated at Culverston Road in Minto, is predominantly comprised of cleared level land and features a newly-built distribution facility as well as 74,000sq m under hailnet and 4,000sq m under roof providing secure space for 3,200 cars.

The site sits within close proximity to Sydney's orbital network and key freight corridors, including the South Sydney Freight Line, M5 Motorway, M7 Motorway and Hume Highway.

▲ Qubes has already invested upwards of $25 million in the site to meet medium-term requirements of the car import, storage and distribution market.
▲ Qubes has already invested upwards of $25 million in the site to meet medium-term requirements of the car import, storage and distribution market.

Development approval for up to 112,000sq m of warehousing is already in place.

Charter Hall's Industrial Fund currently comprises 65 properties, valued at $4.7 billion with a weighted average lease expiry of 11.1 years while also holding a $4.3 billion shopping centre portfolio.

Potential future use for the site could be used to expand relationships with existing supermarket tenants to provide them with logistics services.

Charter Hall chief executive David Harrison said he now hoped to do further business with Qube following an “efficient” transaction.

The Minto property is just one part of Qube's larger property offering, with its $2 billion intermodal freight facility at Moorebank, potentially up for grabs.

The Minto acquisition will now add to Charter Hall's $10 billion industrial and logistics portfolio with $1.3 billion currently in its pre-leased development pipeline across all funds.

Last month, the group secured German supermarket giant Aldi's $648 million logistics property portfolio along with joint venture partner Allianz Real Estate.

The centres, located in in Brisbane, Sydney and Melbourne, were designed and built by the German retailer and sold with seven-year leaseback initial terms plus multiple seven-year options.

It also acquired a 43,000sq m logistics property at Erskine Park for $115 million on behalf of two of its funds.

In May, Charter Hall added 60,000sq m to its logistics portfolio, securing two new Coles distribution centres in western Melbourne's Truganina and western Sydney's Wetherill Park.

In March it signed up retailer Uniqlo to a 46,000sq m distribution centre at the Midwest hub outside Melbourne.

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