Charter Hall take on more long term industrial assets
Charter Hall has acquired two industrial facilities leased to the Australian Federal Police and Australian Border Force in a deal worth about $120M. The deals were conducted on an approximate passing yield of 5.5%.
The first facility is in McPherson Street, Banksmeadow, and has a building area of almost 3000 square metres on almost 23,000sq m of land. The asset has a WALE of 14.3yrs and a net income of $2,653,049 pa. We estimate the transaction to be valued at $48M.
The larger transaction at circa $71M was for the land at 180 Loemans Rd, Bulla. The 38 hectare site contains a 7,932sqm facility with a 25 year WALE and a net passing income of $3,946,677 pa. The balance of the site is in a Green Wedge zone and is unlikely to be developed for some time.
The facilities were developed by Quanstruct on behalf of the Federal Government.