A Bunnings warehouse in Burnie, Tasmania, has been bought by Charter Hall as it adds assets to a forthcoming new consumer staples fund.
The more than 12,000 square metre Bunnings warehouse located on a 3.04-hectare site was bought for $21 million providing a net income of $1,285,085 per annum.
The current 12-year net lease will expire in 2026 with options through to 2056. The Wesfarmers-owned Bunnings site has annual fixed rent increases of 3 per cent.
“A 12,254-square metre Bunnings Warehouse is consistent with the group’s investment and product strategies of owning well-located assets, leased to strong tenant covenants on long-term leases with secure and growing income,” Charter Hall’s chief investment officer Sean McMahon told the Sydney Morning Herald.
“The Burnie property is strategically located in a land constrained, core location with no direct competition providing an ideal long-term facility for Bunnings,” he said.
The site at Burnie on Tasmania’s north-west coast is located at 1-5 Reeves Street. Burnie is a major regional centre and has the state’s busiest port. The warehouse was constructed in 2014.
Burgess Rawson director Darren Beehag who handled the transaction said that Bunnings leased investments are highly sought after by the market due to the Wesfarmers covenant, net lease structure and large strategic land holdings that go typically with a Bunnings site.
Charter Hall’s new consumer staples fund would be aimed at giving investors exposure to a property portfolio leased to companies that get their revenue from the sale of consumer goods.