Charter Hall wholesale partnership LWHP, which comprises VFMC, Telstra Super and CHC as partners, acquired a $353 million portfolio of six Bunnings assets located in prime metropolitan markets.

The largest retail transaction of 2020, CBRE Global Investors have sold their Asia Pacific Bunnings Portfolio for $350mil approx.

The Australian portfolio included: 

• Bonnyrigg
• Caringbah
• Windsor Gardens
• West Footscray
• Underwood
• Virginia

JLL Retail Investments Sam Hatcher told WILLIAMS MEDIA, "Freestanding Bunnings assets are attracting core capital both domestically and offshore."

The portfolio of modern Bunnings Warehouse retail stores, was acquired on a yield of 4.63%. The portfolio, 85% of which is located in Sydney, Melbourne and Brisbane, has a WALE of 10 years and 2.5% annual rent reviews.

Charter Hall Managing Director and Group CEO, Mr David Harrison said: “We are proud to further expand our strong relationship with Wesfarmers and Bunnings Group. Across the Charter Hall platform we now have in excess of $2.4 billion invested in 59 Bunnings stores, 50 of which are located in metropolitan locations. 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.”

LWHP Fund Manager, Mr Ben Ellis confirmed “This off-market acquisition extends the Bunnings relationship, expands our off-market transaction track record and enhances the diversity and breadth of the LWHP partnership which has been one of our most successful partnerships delivering an IRR since inception exceeding 15%.”

Sam Hatcher told WILLIAMS MEDIA, "the assets that provide income certainty, by way of covenant and lease term, are attracting an enormous weight of capital and we expect this to continue."

The off-market deal was introduced to Charter Hall by JLL Retail Investments team Sam Hatcher, Nick Willis & Jacob Swan.

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