Charter Hall, a Dutch pension fund buys a last mile logistics site

Charter Hall and PGGM have now taken charge of developing the well-located site, which is just 2.5 kilometers from Brisbane’s CBD,

“This Bowen Hills property is a strategic brownfield surrounded by high quality residential and commercial uses and has the potential to be developed into higher and better uses in the medium term,” said Sean McMahon, Chief Investment Officer of Charter Hall.

“This site is also well positioned for future last-mile or tiered strategies, offering multiple redevelopment scenarios.”

Real estate company Blue Commercial negotiated the sale off-market.

A future last-mile logistics hub in the city center

The acquisition of Bowen Hills follows Charter Hall lifting its operating profit guidance for fiscal 2022 for the third time last week, following the release of its half-year results.

The group, which manages $80 billion in funds under management, forecast operating earnings per share of no less than 112¢ for this fiscal year, up from the 105¢ announced in December.

Industrial property, booming thanks in particular to the acceleration of e-commerce during the pandemic, has become a major growth engine for Charter Hall, led by David Harrison.

Since its inception in 2019, Mr Harrison said the PGGM Industrial Partnership (CHPIP) has consistently invested in land-rich assets with excellent prospects for redevelopment and strong market fundamentals in each location.

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