Charter Hall’s $7 billion 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 in Eastern Creek, 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 the 19 May, 2021.
CPIF has entered into a five-year Development Management Agreement with the Western Sydney Parklands Trust (WSPT) to develop the master-planned approved Light Horse Business Hub.
Upon completion of each new facility, CPIF will enter 90-year ground leases providing an annual annuity to the trust that will contribute to the cost of operating, maintaining and enhancing the Western Sydney Parklands for the benefit and enjoyment of the community in Western Sydney.
Works are planned to commence on site later this year.
Charter Hall’s managing director and group CEO, David Harrison, said it is the third transaction the company has undertaken with WSPT.
The other deals cover the Horsley Drive Business Park and Bringelly Road Business Hub development projects.
“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,” Harrison said.
The estate has an approved total Gross Lettable Area of approximately 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 $300 million.
CPIF’s fund manager, Richard Mason, said the Light Horse Business Hub provides an excellent opportunity for CPIF to secure a large 35 hectare site in a prime location with the potential to create approximately $300 million of core logistics facilities.
“The momentum in demand for strategic located industrial space is seeing record leasing activity, particularly for larger automated purpose-built facilities,” he said.
“The shortage of zoned, ready to develop land, provides the opportunity to further expand our modern logistics portfolio.”