Woolworths Ltd
(ASX:WOW) has sold a distribution centre in Tasmania to Charter Hall Group
(ASX:CHC) for $75 million.
The acquisition has been made through Charter Hall Groups’ flagship wholesale fund Core Plus Industrial Fund.
The 19.8 hectare site is located near the Launceston Airport on freehold land, meaning the development can expand, with approval for additional building already granted.
Construction of the centre is scheduled to start this month and will be developed by Woolworths who will lease the premises for 25 years upon completion.
The facility will be operated by Statewide Independent Wholesales Ltd and will service 28 Woolworths supermarkets, 19 BWS stores and 208 independent retailers throughout Tasmania.
Charter Hall says it will fund the purchase through debt and equity, with equity drawn from the proceeds of a recent successful equity-raising which has secured around $74 million from both domestic and global investors.
Charter Hall remains confident that it can secure further equity, and is targeting $150 million.
In the 52 weeks to 27 June, Woolworths increased its net profit by 10.1 per cent to just over $2 billion.
