Charter Hall wholesale partnership LWHP, which comprises VFMC, Telstra Super and CHC as partners, has acquired a portfolio of six Bunnings Warehouse retail stores located in prime metropolitan markets for A$353 million.
Charter Hall said the portfolio of modern Bunnings Warehouse retail stores was acquired on a yield of 4.63%. ”The portfolio, 85% of which is located in Sydney, Melbourne and Brisbane, has a WALE of 10 years and 2.5% annual rent reviews.”
“We are proud to further expand our strong relationship with Wesfarmers and Bunnings Group. Across the Charter Hall platform we 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,” said Charter Hall Managing Director and Group CEO.
“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%,” added Ben Ellis LWHP Fund Manager.
The off-market deal was introduced to Charter Hall by Sam Hatcher of JLL.