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Industry News, Latest News, Projects, Victoria

Charter Hall to build logistics facility for Visy

The Charter Hall Group has secured a 6.45-hectare site in Epping, Melbourne and has agreed to build a 33,800 square metre facility for Visy Logistics.

The high clearance warehouse will include eight recessed loading docks and 11 at-grade roller door access points with 20 – 35-metre-wide canopies.

The facility will also include a two-level office of around 1059 square metres, parking for 208 vehicles and a separate truck parking and staging area.

Visy has signed a 10-year net lease with three by five-year options and fixed annual rent reviews of 3.25 per cent. Visy will be relocating from CPIF’s Somerton Logistics Centre.

Charter Hall’s Chief Investment Officer Sean McMahon said Visy has grown to become a major tenant customer of Charter Hall with over $290 million of assets leased with a weighted average lease expiry (WALE) of 17 years.

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“As one of Australia’s largest industrial and logistics owners and developers, Charter Hall was able to leverage its scale and flexibility to deliver a smart, long-term solution to Visy allowing their business to grow. We look forward to expanding the Visy relationship” McMahon said.

The property is located in Epping’s industrial precinct, within the Biodiversity Business Park, and close to the Hume Freeway. It is around 18 kilometres north of the Melbourne CBD, 31 kilometres north of Port Melbourne and 20 kilometres north-east of Melbourne Tullamarine Airport.

Visy’s Group General Counsel Robert Kaye said the group is excited to be partnering with Charter Hall in creating another facility.

“The Epping facility will be an integral part of our supply chain, so having the right expertise and responsiveness from our partners is vital to achieving our objectives,” he said.

Charter Hall Prime Industrial Fund (CPIF) Manager Richard Mason said the land acquisition and development is in line with the Fund’s ‘develop to core’ strategy by creating its own product to hold for the long-term through partnering with key tenant customers in meeting their industrial and logistics requirements.

“The development of this significant facility for Visy adds to CPIF’s high quality and resilient portfolio, whilst providing enhanced returns for our investors and increasing our pre-committed development pipeline to over $1 billion,” Mason said.

CPIF now comprises 76 properties, with a WALE of 10.3 years, 97.2 per cent occupancy and resilient tenant covenants with 95 per cent leased to government, publicly listed or nationally/globally recognised tenants and a high weighting to consumer staples and essential services.

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