Charter Hall Acquires Three Brisbane
Charter Hall has purchased three logistics properties near Brisbane for A$192.4 million on behalf of two funds.
Australian fund manager Charter Hall has paid A$192.4 million ($138.0 million) for three logistics assets southwest of Brisbane. The acquisitions were made on behalf of the newly established Charter Hall Industrial Partnership 6 (IP6) and the existing Prime Industrial Fund (CPIF).
David Harrison, Charter Hall's managing director and group CEO, stated the purchases provide exposure to high-quality assets leased to leading tenants in postal, healthcare, and automotive sectors. The assets add to a A$350 million industrial estate the group is developing near Darra, approximately 20 kilometres from central Brisbane.
Asset Portfolio Details
The three acquired properties are leased to major tenants on long-term agreements. The details of the transactions are as follows:
| Asset | Location | Tenant | Price (A$ millions) | Area | Lease Term | Initial Yield |
|---|---|---|---|---|---|---|
| Logistics Facility | 39 Gravel Pit Road, Darra | Australia Post | 70.2 | 21,757 sq m | 10-year triple-net | 5.75% |
| Automotive Storage | 108 Burman Road, Willawong | PrixCar | 74.5 | 8.9 hectares | Fully leased | Not specified |
| Healthcare Distribution | 51 Peterkin Street, Acacia Ridge | Symbion (EBOS Group) | 47.7 | 12,856 sq m | 15-year triple-net | 5.65% |
The Darra facility was acquired via a sale and leaseback deal with Australia Post, which is selling seven logistics sites. The Willawong acquisition gives Charter Hall a consolidated holding of about 23 hectares across adjoining sites. The Acacia Ridge property was wholly acquired by the CPIF fund.
Strategic Rationale
Richard Stacker, Charter Hall's industrial and logistics CEO, linked the acquisitions to favourable market conditions. "South East Queensland continues to benefit from population growth, freight infrastructure investment and demand from essential supply chain occupiers," he said. The company stated the purchases align with a strategy of acquiring assets with strong tenant covenants, long leases, and underlying land value.
The Darra acquisition was made by IP6 in a joint venture with an unnamed domestic capital partner. This partnership's portfolio now holds three assets valued at over A$650 million.
Brisbane Market Context
Brisbane's industrial market is performing strongly. According to Cushman & Wakefield, first-half leasing take-up exceeded 650,000 square metres, with vacancy falling to 3.5 percent. Despite having only 16 percent of Australia's national industrial stock, Brisbane accounted for 37 percent of the country's net leasing over the past year.
This activity has attracted other investors. LogiSpace, a platform backed by Macquarie Asset Management, bought a development site in Brendale for a planned A$167 million logistics estate. Earlier this year, UK fund manager M&G Real Estate expanded a partnership with Stockland to gain a partial stake in Brisbane's Willawong Distribution Centre.
Charter Hall's latest purchases are adjacent to its existing ConnectWest Industrial Park in Darra, an area the company describes as an infill logistics location.
