Charter Hall’s Direct BW Trust sells Bunnings Taree for $28.15 million

Charter Hall Group (Charter Hall or the Group) is pleased to announce that its Direct BW Trust (BW Trust or the Trust) has divested one of its NSW properties leased by Bunnings in Taree for $28.15 million, in an on-market sales campaign, representing a yield of approximately 5.0%.

Located in Taree, an established town in the mid-north coast of regional NSW, the property is a purpose-built 9,537sqm warehouse facility on a 38,210sqm site.

Purchased by BW Trust for $14.2 million in March 2014, the property is 100% leased to Bunnings, with the current lease expiring in November 2034, plus 8 x 6-year option periods thereafter.

Charter Hall Direct CEO, Steve Bennett, said, “The sale represents a very competitive yield for a regional Bunnings site, and further demonstrates 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 price for unitholders. For investors in the BW Trust, who came in on the Trust’s initial capital raise, they will have received a very strong Equity IRR of 13.9% per annum over 10 years from core Australian real estate.”

The transaction was brokered by JLL through a competitive Expressions of Interest sales campaign. Settlement is due late April 2025.