Charter Hall Group (Charter Hall or the Group) announce that it has successfully divested of approximately $500 million in small-scale industrial assets over the last 18 months, in accretive transactions that demonstrate the depth of demand for assets in the sub-$50 million price bracket.

These transactions, which include 25 assets across New South Wales, Queensland, Victoria, South Australia, and Australian Capital Territory, achieved an average initial yield of 4.2% and an average premium to book value of 4.7%

The buyer profile has primarily comprised of private purchasers, where we are seeing significant demand, as well as owner-occupiers and existing tenant customers that have been unable to lease assets in strategic locations due structurally low vacancies across Australia.

Charter Hall Industrial & Logistics CEO, Richard Stacker, said, “Demand for industrial and logistics assets continues to outpace supply. The strength of these sales and ongoing tenant demand demonstrates this is also the case at the smaller end of the market, despite the challenging economic backdrop. 

“We have been able to capitalise on this demand, executing our long-term strategy of divesting smaller, non-core assets to deploy into modern, large-scale assets that meet the needs of our national tenant customers. We expect these higher quality core industrial assets will experience the highest level of growth, as investors value the security of those tenants – many of which dominate the resilient consumer staples sectors – and capitalisation rates compress into the new cycle.”

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