Property group Charter Hall has used its managed funds platform to acquire a portfolio of 10 cold storage industrial properties in NSW and Victoria from Lederer Group.
The 10 properties, acquired by Charter Hall from Lederer Group for $179.4 million, are tenanted by Brazilian meat processing company JBS, which bought the Primo Meats business from Lederer Group in 2014.
The properties have a collective weighted average lease expiry (WALE) of approximately 10 years, with the majority of the properties leased to JBS.
The transaction reflects an average initial yield of 6.5 per cent, said Charter Hall in a statement.
"The portfolio of properties is predominantly located in NSW and Victoria and are typically temperature controlled cold storage buildings with ancillary office accommodation and provide additional concrete hardstand areas," said Charter Hall.
Charter Hall managing director and chief executive David Harrison said, "Charter Hall has a strong track record in creating institutional grade investment opportunities which provide our investor customers access to a growing and sustainable income stream, generated from high-calibre tenants and quality real estate in strategic locations.
"The size, scale and diversity of Charter Hall’s managed funds has allowed us to secure a large off market portfolio that meets the needs of various funds, providing the vendor confidence to contract with a group that can execute on portfolio acquisitions."
A majority of businesses are expected to pursue mergers and acquisitions this year. ...