The Charter Hall Group has agreed to purchase and lease back a new Woolworths regional distribution centre in Tasmania for $75 million.
Construction is due to commence in October 2010 and the centre will comprise approximately 46,000 square metres of state-of-the-art logistics space. The facility will be developed by Woolworths Limited who will lease the premises for 25 years from completion, anticipated to be late 2011.
The 19.8 hectare site is located adjacent to the Launceston Airport on freehold land and provides for significant expansion, with development approval to build an additional 25,000 square metres. 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.
The property was purchased on an initial yield of 8.6%, with guaranteed fixed annual rental increases of 2.8%.