Charter Hall has acquired a Sydney logistics property for $115 million for its Charter Hall Prime Industrial Fund (CPIF) and Charter Hall Direct Industrial Fund No.4 (DIF4).

Situated at 40-66 Lockwood Drive, Erskine Park, the distribution facility has a total GLA of 43,000sqm, of which approximately 40,000sqm is used for warehouse accommodation with the remaining 3,000sqm being occupied as office accommodation.

The off-market deal, which was brokered by Savills National Head of Industrial & Logistics Michael Fenton, reflects a core cap rate of 4.75 per cent.

At a glance: 

• A distribution centre at 40-66 Lockwood Drive, Erskine Park has been sold to Charter Hall for $115 million.
• Tenanted by Winc Australia, has a total GLA of 43,000sqm, of which approximately 40,000sqm is used for warehouse accommodation with the remaining 3,000sqm being occupied as office accommodation.
• The off-market deal was brokered by Savills Industrial & Logistics & Managing Director for NSW, Michael Fenton.

The facility was originally developed in 2008 for the tenant, Winc, as their national distribution centre. 

The workplace support company have entered into a new 12-year lease to commence at expiry of their current lease in August 2020.

The lease provides for annual rental escalations of 3.25 per cent, with a mid-term market review in 2026

Winc’s key customers are cycle resilient industries, including corporate, healthcare, education and government.

Charter Hall’s Industrial & Logistics CEO, Mr Richard Stacker said he was pleased to welcome Winc as a new tenant customer to the Charter Hall industrial and logistics platform.

“The acquisition of Winc’s Erskine Park facility is consistent with both the Group’s and Funds’ strategy to acquire core logistics properties leased to good quality tenants on long term leases situated in key industrial precincts with access to major infrastructure and transport networks," he said.

"Our $10 billion industrial and logistics portfolio continues to grow via a $1.3 billion pre-leased development pipeline and selective acquisitions and is now 90 per cent located on the Eastern Seaboard."
 
CPIF Fund Manager Richard Mason, said it was a strategic purchase for Charter Hall.

"The acquisition provides a rare opportunity to secure a major logistics facility in the tightly held Western Sydney growth corridor that is supported by convenient access to M4 & M7 Motorways and major infrastructure projects underway including the Badgerys Creek Aerotropolis,"  he said.

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