Charter Hall Snaps Up Coles Distribution Centre

The Charter Hall Group has purchased the Coles distribution centre in Melbourne's suburb of Truganina for just over $100 million, according to The Australian Financial Review. 

Offloading the property is RF Capital, the investment operation of Multiplex scion Andrew Roberts.

Charter Hall confirmed the acquisition to The AFR by its funds platform, explaining that the aim was to grow the company's Long WALE (Weighted Average Lease Expiry), according to the report.

Later this year, Charter Hall, advised by investment banks JP Morgan and UBS, plans to list a Charter Hall Long WALE REIT, which will have a $1 billion-plus portfolio with an average lease term exceeding 12 years, according to The AFR article.

 The attraction of "long WALE" assets has been given additional boost by the success of the $1.8 billion Viva Energy float.

The Truganina distribution centre, which services most of the Coles supermarkets in Victoria, is leased to Coles until 2032.
Earlier this year, Coles won a temporary Supreme Court junction ordering workers on strike to stop picketing outside a distribution centre in Melbourne and targeting company trucks.

The supermarket giant sought urgent legal action after about 650 staff walked off the job indefinitely as they demanded more pay and better job security. The centres store cold items for Victorian and Tasmanian stores.