- Charter Hall’s (CHC) $7 billion wholesale industrial and logistics fund, CPIF, has received development approval for an industrial and logistics hub in Eastern Creek
- Upon construction of each new facility, CPIF will enter into a 90-year ground lease with the trust, providing an annual income to help offset the costs of operation
- The estate has a total gross lettable area of around 170,000 square metres and can support large-scale warehousing and distribution facilities of up to 100,000 square metres, with on-site work expected to begin later this year
- On completion, Light Horse is expected to be worth more than $300 million
- CHC shares are down 1.22 per cent, trading at $14.52 at 2:54 pm AEST
Charter Hall’s (CHC) $7 billion wholesale industrial and logistics fund, CPIF, has received development approval for an industrial and logistics hub in Eastern Creek.
CPIF has acquired the leasehold interest in 35 hectares of master-planned approved industrial land known as the Light Horse Business Hub.
The Western Sydney Parklands Trust (WSPT) is leasing this parcel of land through an open market tender procedure, with the transaction approved and finalised by the NSW Minister for Planning and Public Spaces.
WSPT and CPIF have signed a five-year Development Management Agreement to build the master-planned and approved Light Horse Business Hub.
Upon construction of each new facility, CPIF will enter into a 90-year ground lease with the trust, providing an annual income to help offset the costs of operation.
The estate has a total gross lettable area of around 170,000 square metre and can support large-scale warehousing and distribution facilities of up to 100,000 square metre, with on-site work expected to begin later this year.
On completion, Light Horse is expected to be worth more than $300 million.
“We are delighted to secure the leasehold interest in this strategic parcel of land from WSPT,” Charter Hall managing director and group CEO David Harrison said.
“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 this land is one of the last significant infill greenfield industrial developments sites east of the M7.
The existing State Significant Development approval will provide significantly reduced planning timeframes, according to CPIF fund manager Richard Mason.
Mason said it will allow CPIF to take advantage of changing consumption trends that have been fast-tracked by COVID-19 and has led to increased demand from large omni-channel retailers and eCommerce occupiers.
“The momentum in demand for strategic located industrial space is seeing record leasing activity, particularly for larger automated purpose-built facilities,” he said.
“The shortage of zoned, ready to develop land, provides the opportunity to further expand our modern logistics portfolio.”
CHC shares are down 1.22 per cent, trading at $14.52 at 2:54 pm AEST.