Charter Hall’s wholesale industrial and logistics fund, CPIF, has acquired Auburn Redyard, an outlet style retail centre, for $90 million from Reading Property Group.
Located at 98-100 Parramatta Road, Auburn NSW, the site is strategically placed in central metropolitan Sydney and features a 4.82 hectare landholding.
The high profile land holding is located in the tightly held, land constrained in-fill location of Auburn, approximately 18 kilometres west of the Sydney CBD and 6 kilometres east of the Parramatta CBD.
The centre also features a 10-screen Reading Cinemas complex, two fast-food pad sites and a Telstra exchange.
The property has a gross lettable area of 13,761sqm and provides parking for 727 vehicles.
CPIF Fund Manager Richard Mason said the acquisition replenishes CPIF’s development inventory and provides the potential to grow their Sydney portfolio.
“The site represents one of the few opportunities of scale in the tightly held Inner West Sydney market, where demand is elevated, vacancy rates are at historical lows and prospects for rental growth are considered strong due to the land constrained nature of the precinct,” Mason said.
“The property provides an excellent opportunity for CPIF to acquire a high profile, core infill land holding close to the geographic centre of Sydney with easy access to large consumer markets making this site ideally suited for last-mile occupiers,” he said.
He continued that the completion of the M4/M5 Link Tunnels in 2023 as the last stage of the WestConnex project will further enhance the attractive location characteristics of the site and significantly reduce travel times to Port Botany and the Airport.
CPIF said it has funding capacity to grow its portfolio toward $10 billion with committed equity and imminent revaluation growth. Investors include Australian superannuation funds, global pension funds and insurance companies.
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The transaction was brokered by Phil Gartland and Lincoln Blackledge from Stonebridge Property Group.
Source: Charter Hall