Charter Hall Sells 50% Stake In Bunnings Portfolio

Charter Hall's 

recently established Bunnings Partnership Fund 2 (BPF2) has introduced a 50 per cent equity partner into the wholesale trust that acquired the $127 million portfolio of Bunnings retail stores acquired from Bunnings announced in May 2014.

The BPF2 portfolio comprises approximately 50 per cent of metropolitan located stores in the Perth suburb of Armadale and the Gold Coast suburb of Burleigh Heads, with regionally located Bunnings stores at Gympie and Mackay in Queensland.

All properties are leased to Bunnings on new 12 year leases and provide average 3 per cent per annum rental increases.

Charter Hall has now reduced its equity investment from $59.2 million (100 per cent as announced in May 2014) to $30 million (50.1 per cent), which combined with non recourse bank debt facilities will fund the portfolio.

The Group is in advanced discussions with further co-investors to accommodate further growth in the portfolio.

"We are pleased to continue our strategy of securing high quality, long WALE assets that attract capital partners and drive attractive total returns to Charter Hall and its investment partners. The recycled cash will provide capacity to co invest in other portfolio opportunities,"  Charter Hall’s Joint Managing Director David Harrison said.