Charter Hall Partnership Buys $353m Bunnings Portfolio


Charter Hall has expanded its relationship with Wesfarmers and Bunnings Group, scooping up another Bunnings portfolio with partners VFMC, Telstra Super and CHC, in an off-market deal.

The wholesale partnership, LWHP, purchased the portfolio of six Bunnings warehouses for $353 million, taking Charter Hall’s Bunnings asset count to 59 stores across its platform.

The listed fund manager said the latest portfolio acquisition is located in prime metropolitan markets, with 85 per cent of the portfolio spanning Sydney, Melbourne and Brisbane.

In an announcement to the ASX, Charter Hall chief executive David Harrison said the buy increases its Bunnings store count to 59.

“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.”

The off-market deal was introduced by JLL’s Sam Hatcher, with the portfolio acquired on a 4.63 per cent yield.

Related: Bunnings Sets Up HQ At Growthpoint’s Botanicca

Earlier this year, Charter Hall purchased the Bunnings warehouse in Melbourne’s Clyde North for $42.3 million on a 4.5 per cent yield.

The new 16,000sq m outlet in Melbourne’s south-east sold with a 12-year net leaseback to Bunnings.

The fund manager this month also announced its partnership with Dutch pension fund giant PGGM following a string of deals in the booming logistics sector, to date worth $300 million.

The run includes the partnership’s first purchase at Kingsgrove in Sydney, and the pair’s most recent buy, a Melbourne industrial site for $87 million through a sale-and-leaseback deal—with the partnership eyeing an $800 million logistics portfolio.

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