PROPERTY group Charter Hall, through its $7bn wholesale industrial and logistics fund CPIF, has acquired the leasehold interest in 35 hectares of master planned approved industrial land known as the Light Horse Business Hub at Eastern Creek in New South Wales.
This strategic parcel of land is being leased from the Western Sydney Parklands Trust (WSPT) via an open market tender process, with the transaction approved and executed by the NSW Minister for Planning and Public Spaces on 19 May, 2021.
CPIF has entered into a five-year Development Management Agreement with the WSPT to develop the Light Horse Business Hub. Upon completion of each new facility, CPIF will enter a 90-year ground lease providing an annual annuity to the trust that will contribute to the cost of operating, maintaining and enhancing the Western Sydney Parklands.
Works are planned to commence on site later this year.
Charter Hall’s managing director and group CEO, David Harrison, said, “We are delighted to secure the leasehold interest in this strategic parcel of land from WSPT.
“This builds on our strong relationship with WSPT and is the third transaction we have undertaken with them, following the Horsley Drive Business Park and Bringelly Road Business Hub development projects which have secured long term lease commitments from major tenant customers such as Coles and Bunnings.”
Mr Harrison said CPIF has secured a rare opportunity to acquire the Light Horse Business Hub, given its strategic location at the intersection of the M4 and M7 Motorways and immediately adjoining the Light Horse Interchange at Eastern Creek.
“This is one of the last significant infill greenfield industrial development sites east of the M7 capable of accommodating the growing demand for large state of the art industrial and logistics facilities in Western Sydney,” he said.
The estate has an approved total gross lettable area of around 170,000sqm and has the flexibility to accommodate large-scale warehouse and distribution facilities up to 100,000sqm. Light Horse is forecast to have an on-completion value exceeding $300m.
CPIF’s fund manager, Richard Mason, said, “The acquisition of the 90-year leasehold interest in the Light Horse Business Hub replenishes CPIF’s Sydney land holdings and is in line with CPIF’s strategy of acquiring well located sites close to major transport infrastructure with easy access to large consumer markets.
“The existing State Significant Development approval will provide significantly reduced planning timeframes and allow CPIF to take advantage of changing consumption trends that have been fast tracked by COVID-19 and has led to increased demand from large omni-channel retailers and e-commerce occupiers.
“The momentum in demand for strategic located industrial space is seeing record leasing activity, particularly for larger automated purpose-built facilities. The shortage of zoned, ready to develop land, provides the opportunity to further expand our modern logistics portfolio” Mr Mason said.