The property will be developed by the Gibb Group, who will construct a generic 6,994 square metre logistics facility within the Gracemere Industry Park that will incorporate administration offices and a high clearance warehouse, together with extensive concrete paved driveways and truck manoeuvring/marshalling areas. The facility will be purpose-built for leading road transport provider Toll NQX, part of the listed Toll Holdings (Toll Group), which has committed to a 12 year lease with two, five year options and fixed rental increases of 3.75% per annum. Construction is commencing in November 2013 with completion scheduled for April 2014.

Charter Hall’s Head of Direct Property, Richard Stacker, said the acquisition marks the fifth asset to be added to DIF2’s industrial portfolio with a sixth asset acquisition close to being agreed.

“We have received strong investor interest in DIF2, with the fund recently closing oversubscribed a year ahead of its target closing date, and have the capacity grow this portfolio to approximately $200 million.

“The acquisition of the Toll NQX facility is a great fit for DIF2 given the new 12 year lease to Toll and the property’s strategic location being 15 kilometres south west from the Rockhampton CBD with direct access to the new $50 million Gracemere Capricorn Highway overpass bridge. This allows the facility to service Queensland’s growing mining operations, with the Bowen, Surat and Galilee Basins all within a 400 kilometre radius, whilst Gladstone Port is only 110 kilometres away,” Mr Stacker added.

The acquisition increases DIF2’s current portfolio, settled and under due diligence, to $135 million and its weighted average lease term to 12 years. Other key tenants across the portfolio include Australia Post, Coles and OneSteel.

Charter Hall and its managed funds have made a number of investments in the Rockhampton region including Core Logistic Partnership’s recently acquired three hectare industrial site at Mackay which will house a new 13,763 square metre logistics facility pre-released to Blackwoods. Charter Hall Retail REIT also recently completed a $16 million refurbishment of its Allenstown Square shopping centre in Rockhampton.

“The Queensland market, and in particular the Rockhampton region, is an attractive area for Charter Hall and our managed funds, given the region’s link to the mining and agricultural industries and we are very pleased to be adding another quality property to the Group’s property portfolio,” Mr Stacker added.

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