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Charter Hall Group is pleased to announce it has extended its relationship with the Coles Group (“Coles”) with the extension of leases at their Adelaide and Perth distribution centres.
Coles has signed lease extensions to provide 15 years of term certainty to Charter Hall from 1 January 2020 at the two properties. The lease expiries have now been revised from 2027 for Adelaide and 2028 for Perth to December 2034 for both sites, which comprise a total of 150,000 sqm of lettable floor space over a combined site area of 40 hectares.
These long-term lease extensions demonstrate Charter Hall’s commitment to fostering an active partnership with its tenant customers across its platform. Coles is a long-standing tenant customer of Charter Hall with 4 distribution centres in Sydney, Melbourne, Perth and Adelaide and 34 supermarkets and co-located liquor stores around Australia, as well as the Coles Store Support Centre in Melbourne’s Tooronga.
CEO and Managing Director of Charter Hall, David Harrison, said: “We are delighted to be able to extend our cross-sector relationship with Coles with these lease extensions. Charter Hall is committed to ensuring our cross-sector partnerships deliver optimal outcomes for our customers.”
Coles Chief Property Officer, Thinus Keeve said: “Our Adelaide and Perth distribution centres supply fresh, frozen, chilled and ambient temperature food and groceries to more than 150 Coles supermarkets across Western and South Australia. We’re delighted to have extended the leases on these two facilities as part of our integrated national distribution network.”
The Adelaide property was purpose built for Coles in 2007 and is a 67,947 sqm distribution centre comprising high clearance ambient warehouse, temperature controlled and a freezer warehouse together with modern two storey offices. The property is used as Coles distribution centre to service all their stores in South Australia and the Northern Territory. The property is situated in Edinburgh Parks, approximately 25 kilometres North of the Adelaide CBD, with excellent access to surrounding transport routes. The property is owned by the Charter Hall Direct CDC Trust (52%), Charter Hall Direct Fund No 2 (24%) and Charter Hall Direct Fund No. 3 (24%).
The Perth property was purpose built for Coles in 2008 and is a 81,647 sqm distribution centre comprising ambient warehouse, temperature controlled and freezer facilities and on-site administration buildings. The property is used as Coles’ regional distribution centre for its Western Australian store network. The property is located within the core Perth Airport precinct, approximately 15 kilometres East of the Perth CBD, and the asset is secured by a long-term land lease from Perth Airport with 77 years remaining. The property is owned by the ASX listed Charter Hall Long WALE REIT (49.9%), and two unlisted funds - the Charter Hall Direct Fund No 2 (25%) and Charter Hall Direct Fund No. 3 (25.1%).
Charter Hall Industrial CEO, Richard Stacker, commented “The extension of the leases at Coles’ Adelaide and Perth distribution centres secures a long-term cashflow underpinned by strong tenant covenant, thereby further enhancing the quality of the funds that own these two assets.”