Australian property investment company Charter Hall Group has agreed to acquire a 49% interest for A$840 million in a $1.7 billion portfolio comprising 225 Convenience Retail properties leased to BP Australia Pty Limited (BP) with a 20-year WALE triple net lease.
The BP portfolio consists of the majority of BP’s owned Convenience Retail properties in Australia. The portfolio has a WALE of 20 years, with staggered lease expiries from 18 to 22 years and triple-net structure with annual CPI increases.
Additionally, the Group announced the A$398.9 million acquisition of a 32-year WALE triple net leased industrial facility, in a sale and leaseback from Arnott’s, located within the prime Huntingwood precinct of Sydney’s western suburbs.
The portfolio will be owned by Charter Hall managed Partnership which composed of 50% by Charter Hall Long WALE REIT, 30% by the Charter Hall Retail REIT and 20% by Charter Hall Group, said in a press release.
“We welcome the establishment of these significant tenant customer relationships with BP and Arnott’s. Our success in partnering with Global multi-national and Australian-based corporates in sale and leaseback activities continues to benefit our tenant customers while providing opportunities for our diverse range of investors and securityholders. The creation of this Partnership continues Charter Hall’s growth of new partnerships and funds, whilst further extending the Group’s long WALE investment strategy,” said David Harrison, Charter Hall’s Managing Director and Group CEO.