Charter Hall Group, through three of its managed partnership funds, has acquired an industrial portfolio comprising of six assets, valued at a $171.4 million.
The industrial portfolio is currently leased to the Australasian poultry producer Inghams Enterprises, and the purchase reflects an average initial yield of 7.82 per cent, benefiting from a weighted average lease expiry by income of 22 years.
As part of the transaction, Inghams will remain responsible for all capital expenditure and structural repairs on the properties. The portfolio is 100 per cent leased to Inghams with initial lease terms of between 20 and 25 years.
“The six properties are all well located in strategic industrial locations, with high underlying land values underpinning the long term triple net cashflow," Charter Hall joint managing director David Harrison said.
Charter Hall has acquired $775m worth of portfolio purchases since August 2014, taking the group's total industrial portfolio to $2.35 billion with a weighted average lease expiry of 10.2 years and average rental growth exceeding 3 per cent per year.