Australian property manager Charter Hall has sold a property in the NSW Central Coast, leased to Bunnings, for A$28.15m (€16m).
The asset, held in its Direct BW Trust, is a 9,537sqm warehouse facility on a 38,210sqm site.
Charter Hall Direct’s CEO, Steve Bennett, said the sale represented “a very competitive yield” of 5% for a regional Bunnings site, and further demonstrated the strength in the Bunnings covenant and the commercial property market moving into the next growth stage of the property cycle.
“Our strategy of working collaboratively with the tenant and the on-market sales process has maximised the sale. For investors in the BW Trust, who came in on the trust’s initial capital raise, they will have received a very strong equity internal rate of return of 13.9% per annum over 10 years from core Australian real estate.”
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