Charter Hall has acquired one of the largest logistics asset in Australia in 2020 to date, buying a 43,000sq m facility in Western Sydney for $115,000,000 from Melbourne based private investment firm Kador Group.
Located in the prime logistics market of Erskine Park, 40-66 Lockwood Road is leased to workplace solutions supplier Winc Australia for 12 years from August 2020 on a net rent of $5.175 million per annum, with 3.25 per cent annual increases.
With a gross lettable area of 43,085sq m on an 8.273 hectare site, the property is zoned IN1 General Industrial and offers 40,000sq m of warehouse accommodation and 3,000sq m of office space, split across two floors. The property also benefits from two truck access driveways and all-weather super awnings located along both the eastern and western elevations.
The transaction, handled by Savills Industrial and Logistics Investments team of Michael Fenton, Michael Wall and Alison Spiteri, reinforces the investment thematic of core logistics assets being a safe and stable investment class, even during the current market uncertainty resulting from the COVID-19 pandemic.
According to Michael Fenton, National Head, Industrial and Logistics at Savills Australia, this sale reflects the continued strength in the Industrial and Logistics sector relative to other asset classes. Investors will continue to focus on the sector, and more so now given the current economic turbulence, with the hallmark of strong, secure, and growing income streams.
Mr Fenton went on to say that the Savills Nodemaster platform, developed by Australia's leading data analytics company for industrial real estate, SA1 Property, was utilised to demonstrate the key locational attributes of the site. “These included travel times to key infrastructure, major retail DC's and other key last mile metrics”.
The property is approximately 47km west of the Sydney CBD with excellent access to the major road network including the M4 Motorway, M7 Motorway and Great Western Highway. Surrounding occupiers include TNT Express, Strandbags, Bevchain, Coles, Bluescope, DHL and Linfox.