Charter Hall Spends Almost $24m On Brisbane Site

Charter Hall has paid almost $24 million for a Pinkenba property with a pre-lease in place.

Located at Eagle Farm Rd the 2.485ha parcel of land was sold as a fund through to the $1.9 billion Charter Hall Prime Industrial Fund (CPIF).

The 2.485 hectare parcel in Brisbane marks the company's first deal outside of Victoria with the 10-year prelease to Agility Project Logistics.

Located at Eagle Farm Road, Pinkenba, the property was sold as a fund through to the $1.9 billion Charter Hall Prime Industrial Fund (CPIF), which acquired the 2.485 hectare parcel from the developer.

It was previously owned by Melbourne-based Cadence Property Group which secured a 10-year pre-lease to Agility Project Logistics as part of the deal.

Cadence is developing the site to accommodate an additional 5,930 sqm warehouse, which will complement the existing 5,222sqm warehouse and office. Construction on the new property is due for completion in 2017 in line to support the growth requirements of Agility’s business.

Cadence Property Group Director Charlie Buxton said the deal came on the back of a growing track record in the delivery of industrial and logistics facilities in Victoria.

“We are focused on providing the very best design and delivery service for our customers within the industrial space, and are very pleased to be working with Agility Logistics to expand its Brisbane operations,” Mr Buxton explained.

“We are also proud to partner with Charter Hall on the delivery of this facility.”

Charter Hall Head of Industrial Paul Ford commented on the deal: “This acquisition remains in line with the group’s focus on core locations, generic facilities and long term leases, whilst also providing the opportunity to welcome a new global customer to the portfolio.”

CBRE’s Industrial & Logistics Capital Markets team of Ed Bull and Chris O’Brien negotiated the sale of the property to Charter Hall.

Mr Bull said the attractive, long-term lease covenant was a major drawcard.

“The investment was keenly sought after due to the core location, generic nature of improvements and security of income from a proven quality tenant on a new, long term lease structure,” Mr Bull said.

The suburb of Pinkenba adjoins the Brisbane Airport and provides direct access to the Gateway Motorway.