Source: Burgess Rawson
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  • Charter Hall (CHC), through its wholesaler partner, LWHP, has purchased six Bunnings Warehouse stores for $353 million
  • The LWHP partnership involves Charter Hall, VFMC and Telstra Super
  • Majority of the stores are located in prime metropolitan areas in Sydney, Melbourne and Brisbane
  • The deal has a weighted average lease expiry (WALE) of 10 years
  • On market close, Charter Hall is down 5.95 per cent, trading for $13.59 per share

Charter Hall (CHC) wholesaler partner, LWHP, has purchased six Bunnings Warehouse assets for $353 million.

The LWHP partnership is between the company, VFMC and Telstra Super. The stores were purchased on a yield of 4.63 per cent and have a weighted average lease expiry (WALE) of 10 years.

Bunnings is a hardware retailer owned by Wesfarmers (WES). The Bunnings stores are all located in prime metropolitan markets, with 85 per cent of the stores found in Sydney, Melbourne and Brisbane.

After this deal, Charter Hall will have invested around $2.4 billion in 59 Bunnings Stores, with 50 of them in metropolitan areas.

“We are proud to further expand our strong relationship with Wesfarmers and Bunnings Group,” Charter Hall Managing Director and Group CEO David Harrison said.

“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,” he added.

LWHP Fund Manager Ben Ellis said the LWHP partnership has been very successful with an internal rate of return, since forming, of above 15 per cent.

“This off-market acquisition extends the Bunnings relationship [and] expands our off-market transaction track record,” he concluded.

On market close, Charter Hall is down 5.95 per cent, trading for $13.59 per share.

CHC by the numbers
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