Dexus in box seat for Charter Hall Industrial Portfolio
Dexus are in the box seat to acquire a portfolio of 5 industrial assets from Charter Hall for circa $230m. The combined assets cover 23ha of land and generates over $15m of net income, suggesting an average yield of circa 6.5%, but with a likely individual range of 6% - 9%.
JLL marketed the portfolio, dubbed the "southern cross portfolio", following a decision by Charter Hall to raise capital from asset sales to part fund future development activities including 18 buildings this financial year worth about $608m amongst a $2bn pipleine.
Dexus will likely house the assets in an off balance sheet industrial fund, consistent with its other industrial asset holdings.
The main asset in the portfolio is a 5ha parcel of land in Chullora which contains a 33,739sqm warehouse leased to Volkswagen Group Australia on a 5 year lease. CMA estimate this asset is likely to be priced in excess of $105m on a 6% yield.
The portfolio includes two Western Australian assets at 123 Kewdale Rd and 103 Welshpool Rd; one asset in South Australia at 46 Grand Trunkway Gillman and a final asset in the Northern Territory at 16 Dawson Street East Arm.