Charter Hall buys Coca-Cola Kewdale production facility

Charter Hall Group (Charter Hall or the Group) today announced that it has acquired Coca-Cola Amatil’s principal Western Australian production facility for $45.25 million on a 15-year leaseback arrangement.

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

Charter Hall Group CEO and Managing Director, David Harrison commented on the acquisition: “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. Our industrial funds under management exceeds $6 billion” added Mr Harrison.

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.

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.”

In line with CPIF and CLP’s strategy, the property is located in the prime industrial precinct of Kewdale approximately 3 kilometres from the Perth Airport, 10 kilometres east of the Perth CBD and supported by strong road and rail infrastructure.

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

By: JAGONAL