CHARTER Hall Retail Management has announced it has purchased a 52% stake in a distribution facility at Edinburgh Park, South Australia.
The stake is worth $111.8m as part of a $215m facility fully leased to Coles Group.
Coles has a remaining lease term of 14.5 years plus multiple options.
The distribution facility is in Adelaide’s prime industrial precinct of Edinburgh Park, about 25km from Adelaide CBD and is used by Coles as its sole distribution centre to service all of its retail stores in South Australia and the Northern Territory.
The property has been owned by a Charter Hall partnership between three funds.
Charter Hall Retail REIT chief executive Greg Chubb said the acquisition continued their longstanding partnership with Coles, one of their leading major tenants.
“This acquisition increases the certainty of income through a long 14.5 year lease, provides growth for [our] investors through fixed rental escalations, and improves the resilience and security of income by further increasing CQR’s exposure to Coles,” Mr Chubb said.
“Today’s acquisition fits in our Long WALE Retail property category and is consistent with [our] strategy is to be the leading owner and manager of property for convenience retailers.”
Company full year results are set for 13 August, 2020.