The Charter Hall Prime Industrial Fund (CPIF), Charter Hall’s wholesale industrial and logistics fund, has acquired the leasehold interest in 35 hectares of industrial land known as the Light Horse Business Hub in Eastern Creek, New South Wales.
CPIF has entered into a five-year Development Management Agreement with the Western Sydney Parklands Trust (WSPT) to develop the $300m 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.
Works are expected to commence on site later this year.
“We are delighted to secure the leasehold interest in this strategic parcel of land from WSPT,” said David Harrison, Managing Director and Group CEO of Charter Hall.
“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,” Harrison said.
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The estate has an approved total Gross Lettable Area of about 170,000sqm and can accommodate large scale warehouse and distribution facilities up to 100,000sqm.
Light Horse is forecast to have an on-completion value exceeding $300 million.
CPIF Fund Manager Richard Mason said the acquisition is in line with CPIF’s strategy of acquiring well located sites close to major transport infrastructure with easy access to large consumer markets.
“The Light Horse Business Hub provides an excellent opportunity for CPIF to secure a large 35 hectare site in a prime location with the potential to create approximately $300 million of core logistics facilities and will allow us to meet our customer’s on-going demand for logistics facilities in this area,” Mason said.
He continued that the momentum in demand for strategic located industrial space is seeing record leasing activity, particularly for larger automated purpose-built facilities.
Light Horse is located at the intersection of the M7 and M4 motorways in Western Sydney.
Source: Charter Hall