Charter Hall acquires $353M Bunnings portfolio

Charter Hall Long WALE Hardware Partnership has acquired a $353 million portfolio of six Bunnings stores located in prime metropolitan markets across Australia. The Charter Hall platform now have in excess of $2.4 billion invested in 59 Bunnings stores.

Charter Hall wholesale partnership LWHP, which comprises VFMC, Telstra Super and CHC as partners, acquired the multi-million dollar portfolio of six Bunnings Warehouse retail stores on a yield of 4.63 per cent.

The deal expands Charter Hall’s relationship with Wesfarmers and Bunnings Group.

The Charter Hall platform now have in excess of $2.4 billion invested in 59 Bunnings stores, 50 of which are located in metropolitan locations.

“This transaction represents our seventh Bunnings portfolio acquired since 2006 when we first recognised the strength of the Bunnings business, the relatively low rents per square metre of lettable area and the large prime sites Bunnings typically occupy,” Charter Hall Managing Director and Group CEO, David Harrison said.

The portfolio, 85 per cent of which is located in Sydney, Melbourne and Brisbane, has a WALE of 10 years and 2.5 per cent annual rent reviews.

“This off-market acquisition extends the Bunnings relationship, expands our off-market transaction track record and enhances the diversity and breadth of the LWHP partnership which has been one of our most successful partnerships delivering an IRR since inception exceeding 15 per cent,” LWHP Fund Manager, Ben Ellis said.

The off-market deal was introduced to Charter Hall by Sam Hatcher of JLL.

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