Monday, July 09, 2007

Bunnings Enters $197 Million Sale Leaseback on Six Warehouses in Australia

Brisbane Times - July 6, 2007

Listed property developer and funds manager Charter Hall group has raised $120 million to fund the purchase of six Bunnings warehouses, a shopping centre and a half share in the private Commercial & Industrial Fund.

In a deal worth an overall $197 million, with the remaining $77 million in debt and scrip, Charter Hall will grow its market capitalisation from $1.16 billion to $1.29 billion. It is planned that the new Bunnings warehouses, spread across the country, will be the seed assets for the proposed Charter Hall wholesale Core Plus Retail Fund.

Charter Hall already has an array of retail assets including bulky good centres and Coles distribution centres. These will be placed in the new retail fund with the Bunnings sites giving it a value of about $438 million.

For its part Bunnings, part of the Wesfarmers group, will lease back the centres on 12-year leases. Sphere: Related Content

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