A recently refurbished industrial distribution centre in Canberra has been sold to Charter Hall for $34 million.

The Charter Hall managed Charter Hall Direct Industrial Fund No.4 announced the acquisition of 34-42 Sheppard St, Hume, on Wednesday, making it the tenth industrial and logistics property to come under the fund.
 
Comprising 15,671 square metres across three buildings on 2.89 hectares of land, the property is 94 per cent leased to Recall Information Management (Iron Mountain) and the Commonwealth Government, both existing tenant customers of Charter Hall.

At a glance:

• A Canberra industrial property has been acquired by the Charter Hall-managed Direct Industrial Fun No. 4 for $34 million.
• Charter Hall Direct Industrial Fund No.4 now comprises 10 industrial and logistics properties, with a WALE of 10.3 years, and benefits from 99 per cent occupancy.
• The property at 34-42 Sheppard Street, Hume is 94 per cent leased to Recall Information Management and the Commonwealth Government, both existing tenant customers of Charter Hall.

Recall Information Management occupies 12,325 square metres until 2037 with options to extend, while the Commonwealth Government occupy 2,144 square metres until 2022.

The site has a weighted average lease expiry (WALE) of 14.6 years and weighted average rent reviews of 3.2 per cent per annum.
 
Charter Hall Direct CEO, Steven Bennett said the acquisition of 34-42 Sheppard Street was consistent with DIF4’s strategy of acquiring well-located, quality distribution centres with long WALE, leased to strong tenant covenants.
 
“We were able to acquire the property off-market, which is a testament to the ability of Charter Hall to access quality deals for our funds in a highly competitive industrial market,” he said.
 
The property is situated within the industrial precinct of Hume, just off the Monaro Highway- a major highway link between Canberra and Southern NSW that also provides efficient access to the wider highway network.

Gross assets of DIF4 now total $409 million and the fund is expected to grow to over $500 million as additional equity is raised and deployed.

Mr Bennett said DIF4 was currently open for investment from retail, HNW and SMSF investors.
 
“The fund is benefiting from strong equity inflows as investors are attracted to the quality of the industrial portfolio," he said.

"The fund’s current distribution yield of 6.2 per cent pa and the monthly distributions paid to investors." 

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