Charter Hall’s Core Logistics Partnership (CLP) has acquired a Bunnings leased asset for $70 million for future development.
The 1.9-hectare site is located in the Alexandria/Mascot industrial and logistics precinct. It provided an opportunity to secure to secure an income generating land bank, with a remaining lease term of four years.
Bunnings has operated a store at the site for 20 years, however Charter Hall has negotiated a surrender package with Bunnings who no longer need the facility.
The site is located on the corner of Gardeners Road and Bourke Road, around six kilometres south of the Sydney CBD and 2.5 kilometres from Sydney Airport. It is also close to the St Peter’s Westconnex Interchange which, when opened in 2023, will link Sydney’s two major freeway’s – the M4 and M5.
CLP Fund Manager Simon Greig said the property provides excellent redevelopment options including the ability to develop a high-profile logistics or last mile facility under the current zoning.
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“South Sydney is one of the most sought-after industrial precincts in Australia given the access to major transport hubs, the Sydney CBD, port, airport and surrounding densified residential precincts,” Greig said.
“This acquisition is aligned with CLP’s strategy to replenish its development landbank and grow its Sydney portfolio. It will capitalise on strong demand for industrial and logistics facilities in the South Sydney area.”
Charter Hall Group Managing Director and CEO David Harrison said the off-market acquisition has allowed the company to access a high profile corner site with multiple development options.
“We now own an industrial and logistics portfolio exceeding $11 billion leased to more than 140 tenant customers, which combined with one of the largest pre-leased development pipelines in Australia exceeding $1.5 billion, Charter Hall will continue this 13 year strategy to expand our market share of the prime logistics sector for the benefit of our investors,” Harrison said.