Charter Hall, Allianz Snap Up Aldi Portfolio


Fund manager Charter Hall along with joint venture partner Allianz Real Estate have secured four Aldi distribution centres for $648 million.

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.

The four asset portfolio comprises Sydney logistics facilities located in Minchinbury and Prestons, a Melbourne facility in Dandenong and a Brisbane facility in Brendale and collectively provide a total income of $30.1 million per annum.

Charter Hall managing director David Harrison said the value-focused retailer had been attracted to the transaction's shortened timeframe thanks to the strength of the 50:50 joint venture's combined balance sheets.

The sought-after portfolio had drawn interest from developer Mirvac as well as Asian-based logistics platform ESR.

Related: Charter Hall Buy Sets the Tone in Industrial Market

Charter Hall Swoops on $650 Aldi Portfolio
▲ Charter Hall is known for its inclination towards sale-and-leaseback properties with strong tenant covenants in the retail and industrial sectors.

Allianz Real Estate chief executive Rushbah Desai said the transaction marked a continuation for the company, tapping into the mega-trends underpinning the region.

Aldi, which is known in the market to have a long-term property investment philosophy and prefers to own freehold real estate rather than entering into lease agreements, will continue to operate from the facilities.

Charter Hall will now place the assets, brokered by JLL, within its $6 billion Prime Industrial Fund (CPIF).

In February, the fund manager reported a 28 per cent increase in funds under management of $8.5 billion to $38.9 billion over a busy six months buying office, industrial and logistics properties.

Industrial and logistics properties accounted for 20 per cent of that, or $7.8 billion, with office a far larger component at $17.9 billion.

“Accessing the on-going growth and resilience of grocery retailing in Australia has been a consistent thematic driving the growth of our industrial and logistics portfolio toward $10 billion and beyond, now representing 25 per cent of our enlarged $40 billion platform,” Harrison said.

Charter Hall recently boosted its industrial portfolio by 60,000sq m after securing two new Coles distribution centres in a deal worth $400 million.

The fund manager also recently secured tyre company Bridgestone for a 25,000sq m warehouse and commercial store facility at its masterplanned Midwest Logistics Hub in Truganina, on a 10-year lease term.

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