Tokyo Tatemono and UBS Back A$1.2B Charter Hall Logistics Venture
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Charter Hall has set up an Australian logistics vehicle with Tokyo Tatemono and UBS Asset Management targeting an end value of A$1.2 billion ($859.3 million). The seed portfolio covers 335,000 square metres of east coast warehousing. Long-term leases to major grocery and beverage operators back the assets.
Known as Charter Hall Industrial Partnership 5, the vehicle holds six industrial properties transferred mostly from the manager’s A$14.3 billion Charter Hall Prime Industrial Fund. Supermarket chains Coles and ALDI anchor the sites alongside Coca-Cola. These tenants secure immediate cash flow from essential consumer supply chains.
The deal is Tokyo Tatemono’s initial entry into Australian logistics and its first direct venture with Charter Hall. Under its fiscal 2025 to 2027 plan, the Japanese property group allocated JPY 110 billion ($687.1 million) for overseas deployments. This partnership is its fourth commercial commitment in Australia.
East coast assets and tenant footprint
In Sydney, the portfolio holds three single-storey buildings in Wetherill Park, roughly 32 kilometres west of the central business district. Charter Hall completed the facilities in 2023 following a 2020 commitment by Coles. The site spans 142,599 square metres and delivers 73,835 square metres of net lettable area. Coles leases the whole complex for online fulfilment.
Two established distribution centres make up the Queensland holdings. The first is a 71,670 square-metre facility in Brendale, 22 kilometres north of Brisbane, on a 185,500 square-metre plot. ALDI occupies the entire site after agreeing to a long-term lease expansion earlier this year. The second is a 79,261 square-metre warehouse on a 249,000 square-metre parcel in Richlands. It was built in 1993, expanded in 2017, and is leased entirely to Coca-Cola.
Melbourne hosts the portfolio’s development component in Dandenong South, 31 kilometres from the city centre. The project will yield four single-storey warehouses with 110,943 square metres of net lettable area. It adds capacity to Melbourne’s tight outer-east market.
“The project will yield four single-storey warehouses with 110,943 square metres of net lettable area.”
Capital shifts across Asia-Pacific logistics
Japanese developers and institutional asset managers continue redirecting balance sheet capital into developed Asia-Pacific logistics hubs. Yield spreads in Australia remain wide compared to domestic Japanese debt costs. This gap encourages groups like Tokyo Tatemono to take equity positions alongside local managers rather than building operational teams from scratch.
Wholesale partnerships offer Australian landlords and retail tenants fresh development equity as traditional bank financing faces tighter underwriting constraints. Partnerships tied to grocery and beverage tenants reduce vacancy risks for offshore investors. At the same time, they fund dedicated fulfilment centres for major supermarket chains.
Charter Hall expands wholesale partnerships
This transaction broadens Charter Hall’s institutional roster and extends operational ties with UBS Asset Management into direct logistics ownership. Demand for modern warehousing across Australia’s eastern seaboard is up sharply. Leasing data from CBRE shows net industrial take-up surpassed 1.4 million square metres during the first half of 2026. That is more than double the volume recorded in the previous six months.
Earlier this month, Charter Hall spent A$192.4 million on three logistics properties southwest of Brisbane for a parallel vehicle, Charter Hall Industrial Partnership 6. Those assets feed into an under-construction A$350 million industrial precinct near Darra, about 20 kilometres from central Brisbane.
Timelines and next development milestones
Past Australian projects for Tokyo Tatemono include a 25-unit residential build in Sydney’s Crows Nest and two suburban warehouse projects near Sydney. It also holds a build-to-rent residential development at 899 Collins Street in Melbourne.
Australia’s industrial and logistics sector presents a compelling investment opportunity, supported by attractive market fundamentals, resilient occupier demand and long-term growth drivers.
Work on the Dandenong South logistics estate in Melbourne begins in 2026, with staged handovers running through 2030. Charter Hall and its partners will also start planned expansion work at the Brendale distribution facility before the end of this financial year.
Questions & Answers
Q.What is the primary purpose of Charter Hall Industrial Partnership 5?
What is the primary purpose of Charter Hall Industrial Partnership 5?
This vehicle holds six industrial properties, mostly transferred from the Charter Hall Prime Industrial Fund. These assets aim to secure immediate cash flow from essential consumer supply chains through long-term leases with major grocery and beverage operators.
Q.Which specific tenants are involved in anchoring the properties within the new venture?
Which specific tenants are involved in anchoring the properties within the new venture?
Supermarket chains Coles and ALDI anchor sites, alongside Coca-Cola. Coles leases a complex in Sydney, ALDI occupies a facility in Queensland, and Coca-Cola leases a warehouse, also in Queensland.
Q.Why is Tokyo Tatemono investing in Australian logistics rather than building its own operational teams?
Why is Tokyo Tatemono investing in Australian logistics rather than building its own operational teams?
Yield spreads in Australia are wide compared to Japanese debt costs, encouraging Tokyo Tatemono to take equity positions with local managers. This approach avoids the need to establish operational teams from scratch.
Q.When are the planned developments and expansions expected to be completed or commenced?
When are the planned developments and expansions expected to be completed or commenced?
Work on the Dandenong South estate starts in 2026, with handovers through 2030. Expansion work at the Brendale facility will begin before the end of this financial year.