Petrol giant bp has set up a NZ$534 million (A$489.5m) trust comprising the majority of its New Zealand convenience stores – and sold a 49 per cent stake to two Charter Hall groups.
The sale and leaseback deal is similar to one struck with the same partner last year, in Australia.
The proposed bp NZ Fund will be managed by Charter Hall – which has divvied its NZ$262m stake equally between the Charter Hall Long WALE REIT (CLW) and Charter Hall Retail REIT (CQR).
The latter plans to underwrite a NZ$60m placement, undertake a non-underwritten Security Purchase Plan to eligible security holders here and in New Zealand for another NZ$10m, and fund the balance (NZ$60.8m) with available borrowing capacity.
The NZ portfolio
The portfolio, comprising 70 petrol stations, is trading on a 6.25pc initial yield.
Seventy eight per cent of them are located in metropolitan areas; 72pc in the country’s three biggest cities.
Auckland represents 51pc of the portfolio value.
Initial lease terms to BP Oil New Zealand Limited vary between 18-22 years; the Weighted Average Lease Expiry is 20 (story continues below).
The rental agreements are triple net – with annual CPI-based rises – plus a 0.5pc increase by 2025.
Allens advised bp about the unlisted property fund and Charter Hall sale.
Last December, Charter Hall entered a similar agreement with bp for a 49pc stake in an Australian portfolio of 225 assets – the majority of the vendor’s convenience retail stores, here.
Costing $840m (NZ$917.9m), it was split 50pc to CLW, 30pc to CQR – with Charter Hall Group retaining the balance.
Two months later the Group sold down 17.5pc of its share to CQR taking that group’s ownership to 47.5pc.
The Australian properties carried a 25 year WALE.