Bunnings Sold On as Charter Hall Doubles Down on Retail

Charter Hall’s busy year has gained pace as it offloads a Melbourne Bunnings and splurges more than $300 million on convenience retail assets.

The group sold its Clyde North Bunnings investment for $44 million to Schiavello at a 4.9 per cent yield, a modest gain on its 2020 purchase price of $42.3 million.

Schiavello, which operates across furniture manufacturing, interior construction and property development including Melbourne’s Prima Tower, was drawn to the strategic location and long-term lease extending to 2079.

It’s Charter Hall’s third major retail deal in recent months, adding to a year of heavy trading as the company changes its portfolio mix.

The group has paid $145 million for Chullora Marketplace at Greenacres, 14km south-west of Sydney’s CBD, picking up the centre from Stanley and John Roth, who had held it for 35 years through Henroth Pty Ltd.

Chullora Marketplace is notable as one of only three Sydney centres anchored by all three major supermarkets—Coles, Woolworths and Aldi.

Charter Hall is also acquiring the Waverley Gardens Shopping Centre, 23km south-east of the Melbourne CBD, paying around $170 million to Elanor Investors Group, after rival Vicinity Centres abandoned an earlier bid that could have reached $180 million.

Waverley Gardens includes Coles, Woolworths, Aldi and Big W across 39,737sq m at Mulgrave on a 10.6ha site that also has 93 specialty stores.

▲ Waverley Gardens Shopping Centre at Mulgrave spans 10.6ha. Major anchors including Coles, Woolworths, Aldi and Big W.

Charter Hall’s transaction activity has not been confined to retail property, however—recent industrial land purchases include an $80.55-million Brisbane site planned for a $350-million logistics development.

These transactions follow Charter Hall’s $146-million acquisition of Corio Village Shopping Centre.

The retail expansion builds on Charter Hall’s position as Australia’s largest convenience retail property manager, overseeing about $14 billion in neighbourhood shopping centre assets.

The group has been actively reshaping its portfolio, including divesting childcare assets to focus on life sciences investments through its Social Infrastructure REIT.

Charter Hall’s development pipeline includes major projects such as $925-million Sydney skyscraper development.