Charter Hall has expanded its Bunnings Partnership Fund with the acquisition of a $127 million portfolio of the hardware brand's stores.
Charter Hall said the off-market portfolio acquisition brings its total Bunnings assets under management to $400m and total retail assets under management to $3.2 billion.
The group said the transaction reflects a range of initial yields from 6.95 per cent to 7.5 per cent.
"The Bunnings Partnership Fund 2 portfolio comprises approximately 50 per cent (by value) of metropolitan located stores in the Perth suburb of Armadale and the Gold Coast suburb of Burleigh Heads, with the balance regionally located Bunnings stores at Gympie and Mackay in Queensland," the group said.
All properties are leased to Bunnings on new 12 year leases and provide average 3 per cent per annum rental increases.