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The Charter Hall managed Charter Hall Direct Consumer Staples Fund (DCSF or Fund) has announced the acquisition of a Bunnings anchored retail complex at 303 Stirling Highway, Claremont, Perth, for $35.0 million.
The 5,460 sqm property comprises 3 levels with undercover parking for 318 cars. Bunnings comprise 93% of the retail space (5,062 sqm), with a lease expiry of 2027 plus options.
Charter Hall Direct CEO, Mr Steven Bennett said “This is the second Bunnings property to be acquired by the Fund, with this high quality covenant now comprising 37% of the portfolio by value. We continue to curate a diversified portfolio of commercial properties in DCSF that are well-located, leased to strong tenant covenants on long-term leases with secure and growing income.”
Charter Hall Chief Investment Officer, Mr Sean McMahon said: “We are proud to further expand our strong relationship with Wesfarmers and Bunnings Group which across the Charter Hall platform now exceeds $1.9 billion invested in 48 Bunnings Warehouse assets.”
The property enjoys a prominent corner location, including extensive frontage to the Stirling Highway in Claremont, an affluent suburb, some 10 km south-west of the Perth CBD. The property is strategically located in a land constrained, core location adjacent to Claremont Town Centre, with no direct competition providing an ideal long-term facility for Bunnings.
The property was acquired off-market through the deep relationships that Charter Hall has established in the market.
Charter Hall Direct Consumer Staples Fund now comprises 9 commercial properties which are diversified across property sectors, with a weighted average lease expiry of 7.1 years, and benefits from 100% occupancy. The total portfolio value of DSCF is now $153 million.
DSCF is currently open for investment for retail, HNW and SMSF investors.
“Investors are attracted to the high quality tenant covenants and the Fund’s current distribution yield of 6.9% pa and the monthly distributions paid to investors” said Mr Bennett.