A Brownes Dairy processing facility in Perth suburb of Balcatta has been sold to Charter Hall's Direct Industrial Fund No.4 (DIF4), along with an adjoining parcel of undeveloped land in a $63.5 million acquisition.

The Brownes Dairy facility comprises 8.2 hectares, while the surplus land is two hectares in size.

The Brownes Dairy processing facility has a total gross lettable area (GLA) of 26,392sqm (representing site coverage of 32 per cent) and incorporates a mixture of interconnected buildings including administration offices, milk receiving area, processing and packaging area, chillers, freezers, cold store warehouse, ambient warehouse and freestanding canteen.

At a glance: 

• Charter Hall Direct has announced its Direct Industrial Fund No.4 (DIF4) has acquired 22 Geddes St, Balcatta, Western Australia for $59 million
• The fund has also exchanged contracts on the adjoining undeveloped land at 20 Kenhelm Street, Balcatta, Western Australia for $4.5 million.
• A Brownes Dairy processing facility comprising a total gross lettable area (GLA) of 26,392sqm occupies 8.2 hectares of the site.

Brownes Foods Operations Pty Limited has leased for the property on a triple net basis with 13.9 years remaining on the lease and two 10 year options.

The lease has fixed annual rent increases of 3.25 per cent.

The property is a landmark infill site situated within the Balcatta commercial and industrial precinct approximately 10km north of the Perth CBD.

It enjoys exposure to Reid Highway and is approximately 1.5km east of the Mitchell Freeway.

Charter Hall Direct CEO Steven Bennett said DIF4 continued to grow and meet investor demand for high-quality exposure to the resilient industrial property market.

"The acquisition is consistent with DIF4’s strategy to acquire core logistics properties leased to good quality tenants on long terms leases situated in key industrial precincts with access to major infrastructure and transport networks," he said.

Charter Hall Direct Fund Manager, Miriam Patterson, said the addition of the facility enhanced DIF4’s exposure to the non-discretionary food industry and supported the provision of critical milk processing infrastructure for WA.

“Brownes Dairy is Western Australia’s oldest dairy company, established in 1886, with diverse business operations including production of milk, yoghurt and beverages," she said.

“DIF4 will benefit from the triple net lease structure, with the tenant responsible for any ongoing costs in relation to the maintenance and upkeep of the property, and also the annual 3.25 per cent annual reviews.

"The acquisition supports the current distribution yield of 6 per cent available to investors in DIF4.”

DIF4 is a $949 million unlisted property fund investing in a portfolio of quality Australian industrial and logistics properties.

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