Charter Hall Group has acquired the remaining 50 per cent stake it did not already own in grocery wholesaler Metcash's Canning Vale distribution centre for $63.5 million.
Charter Hall announced today that its newly-established industrial property fund, the Core Logistics Partnership (CLP), had acquired the 50 per cent stake in the distribution centre, as well as an AMCOR logistics facility in Melbourne, for $103.1 million.
CLP is a $400 million fund operated in partnership with two Australian-based institutional investment groups, in which Charter Hall has agreed to invest $14 million.
Charter Hall initially bought a 50 per cent interest in the Metcash centre in March last year for $61.5 million, through its Core Plus Industrial Fund.
The vendor in both cases was the Australian Unity Diversified Property Fund.
Joint managing director David Harrison said Charter Hall was looking to increase its investment into the industrial land sector and was pleased to have entered the new partnership.
“We expect to see continued acquisition opportunities across the industrial market over the next year and with the available capital, combined with debt capacity, CLP will look to grow this portfolio throughout 2013,” Mr Harrison said.
“Once CLP’s current equity is fully deployed, the partnership may also consider further growth beyond 2013.”
At close of trade today, Charter Hall Group shares were down 3.5 per cent, trading at $3.57.