Charter Hall Retail REIT takes 52% stake in $150m Adelaide distribution facility

Charter Hall Retail Management, as responsible entity of Charter Hall Retail REIT (CQR), has announced that CQR has purchased a A$111.8 million ($77.9 million), or 52 percent interest, in a A$215 million ($149 million) high-quality purpose-built distribution facility fully leased to Coles Group Limited (Coles) for 14.5 years.

The distribution facility is located in the Adelaide’s prime industrial precinct of Edinburgh Park, South Australia, approximately 25 kilometers (16 miles) from Adelaide CBD and is utilized by Coles as its sole distribution center to service all of its retail stores in South Australia and the Northern Territory.

The property has been owned by a Charter Hall partnership between three funds. The major 52 percent ownership fund reached the end of its defined investment term, providing a mutually beneficial opportunity for the CDC syndicate investors to exit, while providing CQR a resilient exposure to logistics, leased to one of its major convenien