Woolworths Regional Distribution Centre in Tasmania has been acquired by Charter Hall Group (CHC) for $75 million.
The property fund manager and developer said its Core Plus Industrial Fund (CPIF) has agreed to buy the Launceston facility that will be funded via a combination of debt and equity.
Construction, which is due to commence in October and to be completed by late 2011, will comprise of 46,000 square metres of logistics space. It will be developed by Woolworths Limited that will lease the premises for 25 years.
According to CHC, the facility will be operated by Statewide Independent Wholesalers Limited and will service 28 Woolworths supermarkets, 19 BWS stores and 208 independent retailers throughout Tasmania.
It will be built on a 19.8 hectare site located adjacent to the Launceston Airport on freehold land.
“This acquisition enhances the Fund’s long WALE to now exceed 12 years; further diversifies what is a first rate tenant covenant profile that includes Woolworths, Coles, Toll, Smorgon Steel, Schenker and Myer,” Paul Ford, CPIF’s fund manager, said.