The Charter Hall managed Prime Industrial Fund (CPIF) announced it purchased a 24.89 hectare site from Coca Cola Amatil (Aust) Pty Limited (Amatil) for approximately $156 million.
The property, located at 220-260 Orchard Road, Richlands, Queensland, is 100% leased to Amatil on a 20-year triple net lease structure with 3% annual rental increases guaranteed by the parent company, Coca Cola Amatil Limited, who is one of the largest manufacturers and distributors of non-alcoholic ready-to-drink beverages in the Asia Pacific.
CPIF Fund Manager Richard Mason the facility was a pivotal asset within the Coca-Cola Amatil logistics and supply chain operations, and is a rare offering in the industrial market with its 20 year triple net lease.
"The highly sought after property is one of the single largest industrial investments offered in Queensland and provides CPIF with an attractive investment proposition to secure a high quality facility, leased to an ASX 100 tenant covenant with a fixed income stream," Mr Mason said.
The property is within close proximity to both the Centenary Motorway and the Ipswich Motorway. Richland’s proximity to major highways makes it popular with major retailers, corporate transport, and logistic operators including DHL, TOLL, Iron Mountain, Target, Steinhoff and Myer.
The property is also strategically positioned to take advantage of the anticipated growth in the industrial market as a direct result of both the Queensland and Federal Governments committing to major infrastructure investment projects across South East Queensland.
The site comprises an existing 50,414 square metre warehouse and manufacturing facility with ancillary office.
Amatil have recently commenced the construction of a new distribution facility of 30,594 square metres which will be substantially completed by December 2017. The new warehousing facility will complement the existing manufacturing facility and will incorporate a state of the art Automated Storage Retrieval System and Automated Case Picker into the fitout. The site also provides additional land that could accommodate future expansion to support Amatil’s future requirements.
The $2.4 billion CPIF property portfolio is geographically diverse with 46 assets located within close proximity of key transport infrastructure.
