06/05/2014 - 11:05

Charter Hall in $127m Bunnings buy

06/05/2014 - 11:05

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Property firm Charter Hall Group has added to its portfolio of Bunnings stores with a $127 million acquisition of stores in Western Australia and Queensland.

Charter Hall in $127m Bunnings buy

Property firm Charter Hall Group has added to its portfolio of Bunnings stores with a $127 million acquisition of stores in Western Australia and Queensland.

Charter Hall has purchased a 50 per cent stake in Bunnings stores located in Armadale, on Perth's eastern fringe and the Gold Coast suburb of Burleigh Heads.

It has also bought stores in the regional Queensland suburbs of Gympie and Mackay.

The acquisition adds to Charter Hall's existing stake in Bunnings stores in Queensland, New South Wales and Victoria, taking the value of its Bunnings assets under management to $400 million.

Charter Hall joint managing director David Harrison said the purchase reflected a range of initial yields from 6.95 per cent to 7.5 per cent.

"This sector continues to perform well and we will expand the group's Bunnings partnerships as the right opportunities arise," he said.

Mr Harrison said the company was in advanced discussions with co-investors to partner in the portfolio.

The purchase takes Charter Hall's total retail assets under management to $3.2 billion.

Bunnings last year launched a $312 million sale and lease-back campaign to BWP Trust for a suite of its warehouses.

Bunnings' parent company, Wesfarmers, is the major shareholder in BWP.

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