Charter Hall Group (Charter Hall or the Group) announced today that the Direct Industrial Fund No.4 (DIF4 or the Fund) has acquired Nowra’s Bunnings warehouse for $65.3 million with a net lease of 12-years and an initial passing yield of four per cent.
Charter Hall Direct Chief Executive Officer Steven Bennett, said that DIF4’s acquisition of Bunnings Nowra adds to the Fund’s growing portfolio of high-quality properties with strong tenant covenants.
“Bunnings is arguably one of Australia’s most trusted businesses and we are proud to add its Nowra store to the Fund’s long-term and resilient tenants,” Mr Bennett said.
The number of Bunnings properties across Charter Hall’s portfolios is now 66 and represents a gross annual value of almost $3.7 billion.
Charter Hall Direct Fund Manager Julian Menegazz, said the acquisition of Bunnings Nowra is in-line with DIF4’s strategy to invest in quality properties in premium locations with high capital growth potential and long weighted average leases.
“With a WALE of 11-years remaining and fixed 2.5 per cent annual rent reviews, we are pleased to welcome Bunnings Nowra to the Fund and look forward to enhancing the portfolio’s relationship with an Australian icon,” Mr Menegazz said.
The near new, full format warehouse offers limited capital expenditure over the remaining 11-year lease term. It was transformed in 2021 from a mid-sized format on the same site and is totally occupied by Bunnings.
Located at 159 Princes Highway, South Nowra, the property features prominent 240 metre frontage, and is the only Bunnings in the trade area and the largest on the New South Wales South Coast.
The total site area is 29,350 square metres with an approximate GLA of 17,982 square metres and parking for 428 cars. The property is also conveniently located on the main arterial road connecting Sydney to the South Coast of New South Wales.
The DIF4 Fund delivered a 12-month total return of 21.1 per cent to 31 December 2021. DIF4 currently remains open for investment, has a $2.5 billion property portfolio and is offering investors a distribution yield in excess of five per cent per annum.