A $207 million deal has been struck between Charter Hall and Telstra Super to jointly acquire a number of retail properties.

As part of the contract, Charter Hall and Telstra Super will acquire a national portfolio of recently completed Bunnings Warehouse retail stores for $176 million from Bunnings. The pair have also agreed to acquire a $30.7 million Bunnings anchored property at Stafford in metropolitan Brisbane from the Charter Hall managed Direct Retail Fund.

Charter Hall’s joint managing director David Harrison said: “We are pleased to secure such a high quality portfolio of recently completed properties designed and developed by Bunnings. The average 13.3 year WALE secured from the Bunnings portfolio will provide long term income security from a high calibre tenant.”

The combined $207 million portfolio purchase reflects an initial acquisition yield of 7.6 per cent  post acquisition costs and provides 3 per cent per annum rental increases. The Stafford property has further expansion potential and benefits from a weighted average lease expiry (WALE) of 8.5 years.
The acquisition of the Bunnings portfolio, due to complete in the last quarter of 2012, increases Charter Hall’s managed Australian retail property portfolio to $2.3 billion, with approximately 2,500 tenants and circa 900,000 square metres of lettable area.