AUSTRALIA - Charter Hall has acquired the assets of poultry company, Inghams, but will lease them to the company for at least 20 years.
Charter Hall Group has secured a A$171.4 million industrial portfolio leased to the leading Australasian poultry producer and processor, Inghams Enterprises Pty limited (Inghams) on behalf of its managed funds. The transaction reflects an average initial yield of 7.82 per cent benefiting from a Weighted Average Lease Expiry (WALE) by income of 22 years.
The portfolio of six quality industrial assets has been acquired by three Charter Hall managed funds/partnerships as follows:
- Core Logistics Partnership (CLP) - CLP has acquired the Murarrie, Brisbane and Edinburgh Park, Adelaide facilities for a total price of $105.8 million.
- Direct Industrial Fund (DIF2) – DIF2 has acquired three facilities including Ingleburn, Sydney; Thomastown, Melbourne; and Cleveland, Brisbane for a combined total price of $53.2 million.
- Core Plus Industrial Fund (CPIF) - acquired a $12.4 million facility that adjoins its Hemmant property located within the Port of Brisbane precinct.
The portfolio is 100 per cent leased to Inghams, a leading Australasian poultry producer, with initial lease terms of between 20 and 25 years. The triple net lease structure incorporates annual rent reviews calculated as the lesser of 3.0 per cent or double the Australian CPI growth rate. As part of the transaction, Inghams will remain responsible for all capital expenditure and structural repairs on the properties.
David Harrison, Charter Hall’s Joint Managing Director, said the acquisition is consistent with Charter Hall’s strategy of reweighting its portfolio toward assets with long leases to strong credit quality tenants with leading market positions.
He said: “The six properties are all well located in strategic industrial locations, with high underlying land values underpinning the long term triple net cashflow. Inghams is the largest integrated poultry producer in Australasia, with blue chip customers such as Woolworths, Aldi, KFC and McDonalds, and we are pleased to be welcoming this new tenant customer into our portfolio,” Mr Harrison said.
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