The Charter Hall managed Charter Hall Direct Consumer Staples Fund (DCSF or Fund) recently announced the acquisition of a Bunnings anchored retail complex, at 303 Stirling Highway, Claremont, Perth, for $35 million.
The 5,460 square metre property comprises of three levels with undercover parking for 318 cars. Bunnings encompass 93 per cent of the retail space (5,062 square metre), with a lease expiry of 2027 plus options.
Charter Hall Direct Chief Executive Officer, Steven Bennett said this is the second Bunnings property to be acquired by the Fund, with this high-quality covenant now comprising 37 pe cent 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,” he said.
Charter Hall Chief Investment Officer, Sean McMahon said the company was proud to further expand its 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 kilometres 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.
Charter Hall Direct Consumer Staples Fund now comprises nine commercial properties which are diversified across property sectors, with a weighted average lease expiry of 7.1 years, and benefits from 100 per cent 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 per cent and the monthly distributions paid to investors” Mr Bennett said.