Charter Hall acquires SPC facility in Victoria for $66m

The Charter Hall managed Direct Industrial Fund No.4 has acquired SPC’s facility in Victoria for $66 million with a rare 30-year triple-net lease and an initial passing yield of 6.1%.

The off-market sale and leaseback arrangement with SPC provides the DIF4 with a 30-year triple net lease structure, with an initial commencement rent of $4.0 million and an annual rental review profile of CPI + 0.75%.

This facility is considered a critical infrastructure for SPC. It is the main food production, processing and distribution site in Australia and is in close proximity to Goulburn Valley growers.

Located two hours north of Melbourne, the SPC facility on Andrew Fairly Ave is in Shepparton town centre.

The site comprises a total gross lettable area (GLA) of over 126,000sqm and sits on a total site area of 23.4ha, representing site coverage of 54%. It is adjacent to residential zoned land, the train station and is serviced with strong road connections from surrounding areas into Shepparton, as well as the rest of Victoria and NSW.

Sean McMahon, Chief Investment Officer of Charter Hall, said they are delighted to be part of the SPC success story, and look forward to supporting SPC as its property partner.

“We are proud to be associated with one of Australia’s most trusted and iconic brands in the food manufacturing and consumables sector,” McMahon said.

Steven Bennett, CEO of Charter Hall Direct CEO, said the transaction proves DIF4’s strength in the industry.

“DIF4 continues to meet investor demand for high quality exposure to the resilient and growing industrial and logistics property market,” Bennett said.

“The SPC acquisition is consistent with the Fund’s investment strategy, presenting a rare 30-year triple net lease, introduces a new tenant customer to the fund’s portfolio and enhances DIF4’s exposure to the non-discretionary food industry,” he said.

He continued that the acquisition will see DIF4’s WALE extend to 11.2 years, and maintains the fund’s 100% occupancy rate.

This transaction was brokered off market by Chris O’Brien, Ben Hegerty & Andrew Bell of CBRE.

Source: Charter Hall