Charter Hall Buys Queensland Pubs

ASX-listed fund manager Charter Hall Group has acquired three Queensland pubs for its new $200 million pub fund, The Australian Financial Review reported.

Charter Hall has purchased the Irish Finnegans and Upper Ross Hotel in Townsville for around $25 million from a private investor and the Blue Pacific Hotel in Woorim for $8 million.

Charter Hall, which last month raised $225 million in equity for acquisitions, has stated that it intends to buy more than $2 billion in commercial property this year.

Its latest pub fund, known as the Long WALE Investment Partnership 2, comes after it last year partnered with Hostplus to acquire a $603 million freehold pub portfolio leased to the Woolworths-backed ALH for its first fund.

The second fund, which will also own ALH anchored hotels, currently has no debt and Charter Hall has committed $10 million in equity.

Over the last decade funds under management have risen from $1 billion to $12.7 billion.

So far $56 million in assets have been secured for the fund but the Australian Financial Review reported that further acquisitions for LWIP 2 were imminent.