Kewdale property sells for $45m

Charter Hall Group has acquired Coca-Cola Amatil’s principal Western Australian production facility for $45.25 million.

The 4.3-hectare Miles Road property in Kewdale includes a 26,179 square metre production facility, which will be leased back to Coca-Cola Amatil for 15 years, with a further three x five-year options.

The acquisition includes a first right of refusal over an adjoining Coca-Cola Amatil site.

The property will be owned in a 50-50 joint venture arrangement between the Charter Hall Prime Industrial Fund (CPIF), and Charter Hall Core Logistics Partnership (CLP).

Charter Hall Group chief executive David Harrison commented: “We are pleased to see our wholesale funds extend their joint venture relationship to a fifth asset.”

“The Group continues to grow the size and scale of our industrial and logistics property platform to become one of the nation’s leading managers and developers of industrial and logistics real estate,” he said.

“Our industrial funds under management exceeds $6 billion.”

CEO of Industrial at Charter Hall Richard Stacker said: “This was a great opportunity to purchase a quality asset that comes with a long lease to a blue-chip tenant, providing our investors with income stability and predictability.”

“We are also delighted to be able to extend our relationship with Coca-Cola Amatil, who are a long term tenant in other properties we own at Richlands and Hazelmere, and achieve a positive result for both parties.”

The sale by Coca-Cola Amatil forms part of their portfolio optimisation programme focused on maximising property utilisation and securing sustainable future returns.

Coca-Cola Amatil’s General Manager of Group Property, Matt Toohey, said: “The Amatil portfolio has enormous strengths in manufacturing, commercial space and warehousing, and we’re keen to maximise its use. This includes divesting surplus properties and reviewing opportunities for sale and leaseback where this makes commercial sense.”