Charter Hall Group's Core Plus Industrial Fund will pay $45 million for the former Fairfax print and distribution facility in Chullora, in Sydney's west.
The sale comes just days after entrepreneur Bobby Zagame paid $16m for the former Fairfax Media print site in Melbourne’s northwest.
Fairfax had originally hoped to reap almost $70m from the combined sales of the Tullamarine site and the larger Chullora facility, but will now bank only $61m.
The sales process for Chullora was handled by CBRE and Colliers International.
The Chullora facility was built in 1996 for $315m, and was upgraded in 2001 for $70m.
It was offloaded, along with the Tullamarine site, as the media group continues with deep cost cuts.CPIF fund manager Paul Ford said the acquisition was consistent with the company's strategy of acquiring properties in land constrained areas, with the ability to unlock value and leverage off existing customer relationships.
“The Chullora acquisition presents a strategic site acquisition in which CPIF can increase the floor space and capture strong tenant demand that exists for space within prime Sydney industrial precincts," he said.
"This acquisition increases the prime Sydney weighting of CPIF and extends the group’s industrial platform beyond $3 billion.”
CPIF is a $1.25bn wholesale fund with prime industrial facilities in all major Australian cities and with a development pipeline across the eastern seaboard that has the capacity to deliver in excess of $350m of logistics facilities.