Aldi pockets $678m from sale of four distribution centres

German retailer Aldi has sold off four distribution centres for $648 million in one of the biggest industrial deals of the year.

The highly anticipated sale had major local and offshore players circling, but was snapped up by a joint venture between ASX-listed Charter Hall and insurance giant, Allianz.

The portfolio includes four distribution centres, located in Sydney, Victoria and Brisbane.

The properties will be leased back to Aldi Australia on seven-year leases.

JLL’s head of industrial capital markets and logistics, Tony Iuliano, says the deal “had all the right investment ingredients”.

“Institutional grade distribution centres in the sought after food sector, triple net leases, 7 year lease covenants, and total income of $30.1 million per annum,” he says.

The Aldi distribution centre at Dandenong in Victoria.

“The appeal to the joint venture between Charter Hall and Allianz of these assets is the investment focus on defensive industries, particularly food related tenants.”

The sale comes as growth in food retailing and online distribution is forecast to increase making these types of assets attractive in the future.

JLL has identified up to $1.2 million worth of leaseback transactions that are currently underway or to be offered in the near future, proving the resilience of the asset class, according to Luliano.

This likely signals  investors are chasing safe havens offered by logistics and industrial property with key supply chains amid concerns the commercial property sector as a whole will take a hit as Australia emerges from the pandemic.

Since starting up in Australia in 2001, Aldi has amassed more than 540 stores Australia-wide.

The Aldi distribution centre at Minchinbury in NSW was sold as part of a large portfolio.

It has also set up a strong distribution network as it continues to take on local supermarket giants Coles and Woolworths.

The centres sold are at Prestons and Minchinbury in Sydney, Dandenong in Victoria and Brendale in Brisbane.

When the portfolio hit the market in February it came as a surprise, given the retailer’s preference to own rather than rent its properties.

But the selloff created plenty of buzz and was tipped to be worth $700 million in February before COVID-19 struck.