Charter Hall buys Bunnings, office

The Baldivis property was majority occupied by Masters when Acure bought it.

Charter Hall has snapped up another Bunnings backed investment for its Long WALE REIT (CLW).

The Baldivis outlet at the north west corner of Baldivis and Safety Bay roads is costing $49 million from Acure managed Hammersley Unit Trust.

Charter Hall and Abacus recently each snapped up a 33.3 per cent stake of Myer Melbourne.

The vendor paid $29.52m in 2015.

On 3.4 hectares it contains a 13,318 square metre warehouse.

PetStock occupies a standalone building (of 922 sqm).

Baldivis is about 45 kilometres south of Perth.

Bunnings Baldives

When Perth-based Acure purchased the asset, it was majority occupied by Masters on a lease expiring in 2030.

That hardware chain ceased in late 2016.

Bunnings committed for 12 years in April, 2018.

“The sale made good sense for [trust] investors, especially in light of market conditions and historically low interest rates,” Acure managing director Angelo Del Borrello said.

“The culmination of this sale speaks to many things, but importantly our ability as an asset manager to navigate the challenges that can arise in the commercial leasing space,” he added (story continues below).

“When Masters exited the market, we were able to negotiate a new lease agreement with Bunnings to come into the space, which was absolutely critical for our investors”.

Following settlement this month, Hammersley Unit Trust’s internal rate of return equates to 17.6 per cent, per annum.

CLW beefs up

The property is one of three which Charter Hall announced today would be held by CLW (story continues below).

The others are a third share of Myer Melbourne, costing $135.2m, and a Brisbane industrial investment at 29-37 Ron Boyle Crescent, Carole Park ($83.1m).

Fund manager Avi Anger said the blended yield for the latest properties was 5.1pc and the Weighted Average Lease Expiry was 11.2 years.

CLW now holds 467 properties worth a total of $5.279 billion.

The fund’s WALE is 13.2 years.

The Baldivis acquisition comes nine months since Charter Hall, for the trust, spent $353m on six Bunnings-backed investments – in Sydney, Melbourne, Brisbane and Adelaide.

Charter Hall buys balance of Brisbane office

Meanwhile, Charter Hall is paying Keppel REIT $264m for the half stake it didn’t own of Brisbane’s 275 George Street.

Coincidentally, the parties traded the share in the 31-level, 41,748 sqm office 10 years ago.

That deal was worth $166m.

Upon settlement, the investment will be held entirely by Charter Hall’s Prime Office Fund.

That trust co-owns the neighbouring building, 69 Ann St, with Charter Hall Direct Office Fund.

Amalgamated, the properties cover an 8000 sqm site.

JLL’s Seb Turner and Paul Noonan represented Keppel.

Savills’ Barney Dear brokered the Bunnings sale.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of