Steven Bennett
Charter Hall Direct is pleased to announce that the Direct Industrial Fund No.4 (DIF4) has acquired 130-170 Andrews Road, Penrith in Sydney for $88 million, as part of a portfolio of sale and lease back deal with Owens-Illinois Australia (OIA).
Charter Hall through its strong relationships with leading corporate tenants in Australia continues to be dominant in the sale and lease back segment, unlocking exclusive opportunities for investors.
The sale and lease back agreement provides for a 20 year triple net lease, with fixed 3.0% annual rent reviews. OIA has recently announced that they are divesting their Australian operations to Visy, a leading packaging & resource recovery company. A wholly owned subsidiary of Visy will be the tenant once the deal is complete at the end of July.
Three properties were part of the deal, a Charter Hall wholesale fund simultaneously acquired 21 Simcock Avenue, Spotswood, VIC 3015 in Melbourne and 617-625 Port Road, West Croydon in Adelaide for a total of $126 million.
The DIF4 property is a glass manufacturing facility with an adjoining warehouse. OIA is the leading manufacturer of glass for the Australian food and beverage industry with clients including CUB, Asahi/Schweppes, Lion, Simplot, and Bega.
Charter Hall Direct CEO, Steven Bennett, commented “DIF4 continues to grow and meet investor demand for high quality exposure to the resilient industrial property market. This acquisition shows the strength of the Charter Hall Group acquisition pipeline, utilising the combined capacity of its suite of funds to secure properties not ordinarily available to retail, HNW and SMSF investors.”
DIF4 Fund Manager, Miriam Patterson said “The acquisition of the Penrith property enhances the Fund’s quality of income given the 20 year triple net lease, increases Sydney concentration and extends the Fund’s WALE to a market leading 10.8 years. The additional benefit of the triple net lease structure is that the landlord is not responsible for any ongoing costs in relation to the maintenance and upkeep of the property. The acquisition supports the current distribution yield of 6% available to investors in DIF4.”
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.