Fund manager Charter Hall is the latest fund manager to join the industrial property bonanza in Melbourne’s west, snapping up a logistics facility in Altona for $29.5 million.
The 17,500sq m warehouse is fully leased to Super Retail Group chain Rays Outdoors and sits on a 4.2-hectare site at 28-30 Marshall Court, Altona.
The Charter Hall fund joins majors Lendlease, ISPT, Goodman Group and GPT by increasing its exposure to the industrial sector in Melbourne’s sought-after west, as the e-commerce boom fuels demand for industrial property.
ISPT recently paid $60 million for a 30-hectare site in Altona North, while an owner-occupier bought a 9.4-hectare holding nearby at Kororoit Creek Road for $18 million. GPT Group made two purchases in Derrimut and Truganina in February.
Colliers logistics and supply chain national director Monica Velez said continued investor demand in Melbourne’s industrial sector has been well supported by state government investment in infrastructure in Victoria.
“The amount of enquiry for the west currently outweighs supply, traditional developers [like] Dexus, Charter Hall, Goodman and Frasers are beginning to unlock the next wave of new speculatively built development in response to this.”
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Charter Hall’s new asset, acquired by its Direct Industrial Fund 4, will benefit from the Victorian government’s strategy to build an integrated rail system between the Port of Melbourne and key industrial areas Altona, Lyndhurst and Somerton.
“This acquisition is in line with the fund’s strategy to acquire core Eastern seaboard industrial properties situated close to major transport infrastructure,” Charter Hall Direct head Steven Bennett said.
Charter Hall’s Direct Industrial Fund 4 manages an eight property industrial portfolio valued at $387 million with plans to boost its logistics exposure to more than $500 million.
Charter Hall’s $4.5 billion direct property business has been acquisitive of late — buying 121 King William Street, Adelaide for $82.25 million, 737 Bourke Street for $192 million and twin towers in Sydney’s Barangaroo for $804 million.