Charter Hall has received approval to develop a $300 million industrial and logistics estate in Eastern Creek, NSW.
The company’s industrial and logistics fund, CPIF, acquired the leasehold interest in 35 hectares of master planned approved industrial land.
The strategic parcel of land, called the Light Horse Business Hub, is being leased from the Western Sydney Parklands Trust (WSPT) via an open market tender process, with the transaction approved and executed by the NSW Minister for Planning and Public Spaces on the 19th of May, 2021.
CPIF has entered into a five-year Development Management Agreement with the Western Sydney Parklands Trust (WSPT) to develop the Light Horse Business Hub.
Upon completion of each new facility, CPIF will enter a 90-year Ground Lease providing an annual annuity to the trust that will contribute to the cost of operating, maintaining and enhancing the Western Sydney Parklands for the benefit and enjoyment of the community in Western Sydney. Works are planned to commence on site later this year.
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The estate has an approved total Gross Lettable Area of approximately 170,000 square metres and has the flexibility to accommodate large scale warehouse and distribution facilities up to 100,000 square metres. Light Horse is forecast to have an on-completion value exceeding $300 million.
Charter Hall’s Managing Director and Group CEO David Harrison the company is delighted to secure the leasehold interest in the strategic parcel of land from WSPT.
“This builds on our strong relationship with WSPT and is the third transaction we have undertaken with them, following the Horsley Drive Business Park and Bringelly Road Business Hub development projects which have secured long term lease commitments from major tenant customers such as Coles and Bunnings,” he said.
“CPIF has secured a rare opportunity to acquire the Light Horse Business Hub, given its strategic location at the intersection of the M4 and M7 Motorways and immediately adjoining the Light Horse Interchange at Eastern Creek. This is one of the last significant infill greenfield industrial development sites east of the M7 capable of accommodating the growing demand for large state of the art industrial and logistics facilities in Western Sydney.”