Charter Hall's Direct Industrial Fund No.4 enhances portfolio with $63.5 million industrial acquisition

Charter Hall Direct is pleased to announce that the Direct Industrial Fund No.4 (DIF4) has acquired 22 Geddes St, Balcatta, Western Australia for $59 million leased to Brownes Food Operations Pty Ltd (Brownes Dairy) and exchanged contracts on the adjoining undeveloped land at 20 Kenhelm Street, Balcatta, Western Australia for $4.5 million.

Combined the site area is 10.2ha with the Brownes Dairy facility having a total area of 8.2ha and surplus land of 2.0ha.

The Brownes Dairy processing facility comprises a total gross lettable area (GLA) of 26,392sqm (representing site coverage of 32%). The facility incorporates a mixture of interconnected buildings including administration offices, milk receiving area, processing and packaging area, chillers, freezers, cold store warehouse, ambient warehouse and freestanding canteen.

Brownes Foods Operations Pty Limited has leased for the property on a triple net basis with 13.9 years remaining on the lease and two 10 year options. The lease has fixed annual rent increases of 3.25%.

The property is a landmark infill site situated within the Balcatta commercial and industrial precinct approximately 10km north of the Perth CBD. It enjoys excellent exposure to Reid Highway and is approximately 1.5km east of the Mitchell Freeway.

Charter Hall Direct CEO, Mr Steven Bennett said “DIF4 continues to grow and meet investor demand for high quality exposure to the resilient industrial property market. The acquisition is consistent with DIF4’s strategy to acquire core logistics properties leased to good quality tenants on long terms leases situated in key industrial precincts with access to major infrastructure and transport networks.”

Charter Hall Direct Fund Manager, Miriam Patterson, said “Brownes Dairy is Western Australia’s oldest dairy company, established in 1886, with diverse business operations including production of milk, yoghurt and beverages. The addition of this facility enhances DIF4’s exposure to the non-discretionary food industry and supports the provision of critical milk processing infrastructure for the State.”

“DIF4 will benefit from the triple net lease structure, with the tenant responsible for any ongoing costs in relation to the maintenance and upkeep of the property, and also the annual 3.25% annual reviews. The acquisition supports the current distribution yield of 6% available to investors in DIF4.”

DIF4 is a $949 million unlisted property fund investing in a portfolio of quality Australian industrial and logistics properties. DIF4 aims to provide investors with sustainable and stable, tax advantaged income and the potential for capital growth from a portfolio with a 11.3 year WALE diversified by geography, tenant customer industries, with average property rental growth of 3% per annum. DIF4 is currently open for investment with a minimum investment of $20,000, the potential to receive sustainable and stable-tax advantaged income paid quarterly and the potential for capital growth.

DIF4 is currently available on the following platforms: Asgard, Direct, BT Wrap, BT Panorama, Macquarie, Netwealth, Hub24, Powerwrap, First Wrap, and North.