Visy has signed a 10 year lease for a 34,777sqm site in Epping, Melbourne, relocating from CPIF’s Somerton Logistics Centre. The facility will be an integral part of its supply chain from March 2021.
Charter Hall Group announced that its largest industrial fund, the $5.8 billion wholesale Charter Hall Prime Industrial Fund (CPIF), has secured a 6.45 hectare site in Epping and agreed to a 34,777sqm pre-lease to Visy Logistics.
The property is situated in the core industrial precinct of Epping within the Biodiversity Business Park, which is strategically located adjacent to the Hume Freeway and within close proximity to Melbourne’s wholesale fruit, vegetable and flower market, approximately 18 kilometres north of the Melbourne CBD, 31 kilometres north of Port Melbourne and 20 kilometres north-east of Melbourne Tullamarine Airport.
“Visy has grown to become a major tenant customer of Charter Hall with over $290 million of assets leased with a weighted average lease expiry (WALE) of 17 years,” Charter Hall’s Chief Investment Officer, Mr Sean McMahon, said.
“As one of Australia’s largest industrial and logistics owners and developers, Charter Hall was able to leverage its scale and flexibility to deliver a smart, long-term solution to Visy allowing their business to grow. We look forward to expanding the Visy relationship.”
Visy’s Group General Counsel, Mr Robert Kaye, said that Visy is excited to be partnering with Charter Hall in creating another state of the art facility.
“The Epping facility will be an integral part of our supply chain, so having the right expertise and responsiveness from our partners is vital to achieving our objectives,” he said.
The focus of activity in the Northern industrial market has shifted over the years, due to the delivery of major road infrastructure, major government initiatives including relocating the Fresh Produce and Fruit Market to Epping, proximity to amenities and excellent road links between the inner and outer industrial markets.
“The land acquisition and development is in line with the Fund’s develop to core strategy by creating our own product to hold for the long-term through partnering with key tenant customers in meeting their industrial and logistics requirements,” CPIF Fund Manager, Mr Richard Mason, said.
“The development of this significant facility for Visy adds to CPIF’s high quality and resilient portfolio, whilst providing enhanced returns for our investors and increasing our pre-committed development pipeline to over $1 billion.”