Charter Hall Ltd and Perth-based Wyllie Group have paid $41 million for a portfolio of properties in inner city Melbourne owned by Fosters Group Ltd.
Charter Hall Ltd and Perth-based Wyllie Group have paid $41 million for a portfolio of properties in inner city Melbourne owned by Fosters Group Ltd.
Charter Hall joint managing director David Harrison said the properties, located adjacent to the Fosters Abbotsford Brewery, were secured on an initial yield of 7.12 per cent and comprise a total of 20,000 square metres of land area and a combined lettable area of buildings that are developed of approx 12,000sqm.
Fosters Group has leased back the portfolio of 10 properties to the joint-venture partners for an intial 10 years, with two five-year extention periods.
"Abbotsford continues to be gentrified and we believe the long term outlook for these investments will provide both capital growth and secure, growing income returns with the benefit of 3.75 per cent per annum rental increases," he said.
The properties adjoin the Yarra River and are predominantly used for offices, visitors and display centre together with open car parks used to accommodate staff working at the brewery.
Wyllie Group managing director Melissa Karlson said she was pleased to further progress the relationship with Charter Hall since the creation of the joint venture to own St Georges Square in Perth CBD during 2006.
"Wyllie Group has been intent on diversifying our property interests toward the eastern seaboard markets and believe this portfolio is secure, but also provides flexibility with multiple sites, divestment options and redevelopment potential over the long term," she said.
In a separate deal announced today, Charter Hall has acquired a 50 per cent stake in the development of a 32,460 square metre bulky goods centre North of Adelaide for its Opportunity Fund 4, in joint venture with Axiom Properties Ltd.
The centre is part of a larger 60,000 square metre bulky goods development project at Gepps Cross.
The balance of the development will be a joint-venture between Axiom Properties Limited and Harvey Norman and will be anchored by a 12,000 square metre Harvey Norman store.
The three developers acquired the 16.5 hectare site on Main North Road from Axiom's major shareholder, Peter Laurance's Pivot Group, who co-ordinated the amalgamation, rezoning and development approvals for the site.
Construction has commenced following the granting of a revised approval earlier this month with the development expected to be completed by May 2009.
