Boral inks deal at Chullora Logistics Park
The Charter Hall-run Prime Industrial Fund has unveiled a major new lease agreement with Boral at its Chullora Logistics Park in Sydney as it capitalises on strong demand in the city.
Two units of the building materials company will occupy a new purpose-built 10,749sqm facility, giving it a weighted average lease term of more than eight years.
The CPIF bought the 10.3ha site at on the Hume Highway from Fairfax in August 2015 when the media company shut the printing plant, and has since transformed it into a $150 million industrial park.
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CPIF fund manager Richard Mason says Chullora is a key “last mile” logistics hub precinct, as industrial stock in South Sydney has been removed for commercial and residential uses and traditional users serving the CBD and surrounding Sydney metro market have been pushed further out.
Head of industrial development Andrew Simons said the site was acquired with plans to retain and extend the existing buildings, but demand from blue-chip occupiers led the company to demolish the printing plant and build a high-quality estate.
The site also houses Lion (Dairy), Australia Post and Rittal. The postal service has a 21,930sqm facility on a 15-year lease term, Lion Dairy and Drinks has a 9985sqm facility on a 15-year lease term and Rittal occupies 4480sqm for 10 years.
CPIF’s property portfolio is mainly in key, land-constrained growth markets of Sydney and Melbourne with a high proportion of core assets.
The portfolio spans 53 assets near transport infrastructure.
This article originally appeared on www.theaustralian.com.au/property.
