Charter Hall Group (Charter Hall or the Group) is pleased to announce that its wholesale PGGM Industrial Partnership (the Partnership or CHPIP) has acquired a 1.56ha premium inner brownfield industrial site in Queensland for $60 million off-market, reflecting a 4.4% equated yield with minimum annual rent reviews of 3%.

The property, at 66-98 Montpelier Road, Bowen Hills, presents an attractive, land-rich investment in one of the country’s key last mile markets, underpinned by strong tenant covenants and long-term redevelopment opportunities with its flexible, mixed-use zoning.

Conveniently located just 2.5 kilometres north-east of Brisbane’s CBD, this 15,600 square metre (sqm) asset presents 120 metres of street frontage and GLA of 9,534 sqm across four buildings. It is currently used for industrial purposes with multiple quality tenants including Sime Darby, Tradelink, Mine Site Technologies and Corporate House Services and presents a WALE of 4.4-years.

Charter Hall Chief Investment Officer, Sean McMahon, said, “This Bowen Hills property is a strategic inner brownfield asset surrounded by high quality residential and commercial uses and has potential to be developed into higher and better uses in the medium term.  This site is also well positioned for last mile or multi-level strategies in the future, providing multiple redevelopment scenarios.”

“This acquisition diversifies CHPIP’s partnership nationally, with high profile tenant customers such as BMW, Coca Cola, Mazda, CEVA, Ingham’s and Australia Post.”

Montpelier Road’s tenancy and strategic use is in line with CHPIP’s “Create-Core” investment thesis, offering potential for significant capital benefits based on location, prominence, flexible zoning and attractive mixed-use opportunities.

Charter Hall Managing Director and Group CEO, David Harrison, said, “The CHPIP partnership commenced in 2019 and has consistently invested in high ‘land-rich’ assets with excellent redevelopment prospects and strong market fundamentals in each location.”

“CHPIP’s portfolio has expanded to approximately $560 million and is currently performing due diligence on the $1.6 billion Irongate (ASX:IAP) portfolio.”

66-98 Montpelier Road, Bowen Hills was secured off-market with Blue Commercial.