Charter Hall Adds to Brisbane Trade Coast Holdings

Charter Hall’s Core Plus Industrial Fund (CPIF) has acquired a strategic industrial land holding near the Port of Brisbane, adding to its existing holdings on Lytton Road at Hemmant.

The property is a 17,766sq m General Industry zoned site within the Trade Coast precinct at 1517 Lytton Road, Hemmant, which was acquired off market for $6 million prior to being taken to campaign by Shaw Harrison of Savills.

The site had historically been used as part of the overall Inghams chicken facility and most recently as a transport yard.

Shaw Harrison leased out the vacant yards and split the total site into smaller tenancies, occupied by hardstand and transport depot tenants. The total current income of $520,000 represents a yield of 8.66% which includes a rental guarantee for the vacant yard.

Mr Harrison said the acquisition of 1517 Lytton Road “adds the final piece of the puzzle” following Charter Hall’s previous acquisitions of the neighbouring properties, 1510 Lytton Road in 2014 and 80 Canberra Street in 2012. The latest acquisition brings the total holding to more than 12ha of future developable land backed by a WALE of around 14 years with some medium-term development upside.

Charter Hall’s Head of Industrial Paul Ford said: “The acquisition is right on strategy in terms of investing in highly land-constrained markets within very close proximity to key infrastructure in the Port of Brisbane and Gateway Motorway. It enables us to work closely with, and provide flexibility, in terms of expansion or reconfiguration requirements, for one of our key customers, Inghams.”

Mr Harrison added: “Savills has been working this property for a number of years to secure the current tenants for the property. We were regularly inundated with inquiry on the property due to the strong demand for the secure lay-up yard that is affordable and close to the Port.”.

“With demurrage and detention tariffs getting tighter for logistics carriers, they are often looking for a yard that they can drop their cargo until their customers are ready to take delivery. This transport yard creates the perfect solution for carriers.”

Mr Harrison said the property was an obvious choice for Charter Hall following its collection of neighbouring assets in recent years.

He said the vendor had been preparing to take the property to market under a full campaign, when Savills approached Charter Hall prior to gauge their early interest.

Mr Harrison said the fully fenced property with workshops and separate yards provide attractive holding income while the new owner assesses future options.

“Strategic sites such as this in the Trade Coast area are very hard to come by, and when combining this property with Charter Hall’s adjoining land holdings, this forms a highly strategic acquisition,” he said.

“The Trade Coast provides convenient road access direct from the Port to both the north and south of Brisbane via the Gateway Bridge and Motorways and, as such, is a strategic logistics location and busy route for trucks and heavy vehicles. This site will be the next big thing in the Trade Coast precinct.”