Charter Hall Group will buy Coca-Cola Amatil’s main production facility in Western Australia in a $45.25 million deal on a yield of about 6 per cent that includes a 15-year leaseback, the company announced on Thursday.
The 4.3-hectare property in the Perth suburb and prime industrial precinct of Kewdale, will be owned as a joint venture between Charter Hall Prime Industrial Fund and Charter Hall Core Logistics Partnership.
The facility, which is about three kilometres from the Perth airport, 10 kilometres east of the CBD and supported by road and rail infrastructure, will be leased back to Coca-Cola Amatil for 15 years with a further three and five-year options.
“This was a great opportunity to purchase a quality asset that comes with a long lease to a blue-chip tenant, providing our investors with income stability and predictability,” Charter Hall’s chief executive of industrial, Richard Stacker, said.
“We are also delighted to be able to extend our relationship with Coca-Cola Amatil, who are a long-term tenant in other properties we own at Richlands and Hazelmere, and achieve a positive result for both parties.”
Continuing to grow
Charter Hall Group CEO and managing director, David Harrison, said this latest acquisition was the fifth property bought as a joint venture between the two funds.
“The group continues to grow the size and scale of our industrial and logistics property platform to become one of the nation’s leading managers and developers of industrial and logistics real estate,” Mr Harrison said.
The sale of the property by Coca-Cola is part of the company’s strategic review of its property portfolio to ensure sustainable returns.
“The Amatil portfolio has enormous strengths in manufacturing, commercial space and warehousing, and we’re keen to maximise its use,” Coca-Cola Amatil’s general manager of group property, Matt Toohey, said.
“This includes divesting surplus properties and reviewing opportunities for sale and leaseback where this makes commercial sense.”
In 2017, Coca-Cola announced it would close down its South Australian manufacturing plant in the Adelaide suburb of Thebarton by 2020, to instead focus on increased production in Queensland and Western Australia.