Bunnings Warehouse
Six of the long WALE assets are leased to retailer Bunnings (picture is located at Warwick in southeast Queensland). Source: Image supplied.
  • Private investors has listed a $450 million portfolio
  • The portfolio consists largely of long WALE, single tenant assets
  • CBRE's Simon Rooney has been appointed in charge of the portfolio sale

A private syndicate of Australian-based investors has listed a high-quality portfolio of 14 core retail assets for sale, with pricing expectations up to $450 million.

Simon Rooney, CBRE’s Pacific Head of Retail Capital Markets has been appointed to steer the portfolio sale.

The portfolio is comprised of predominantly long WALE, single tenant assets (six of which are leased to leading home improvement and outdoor products retailer Bunnings).

The sale process follows the recent acquisition by Charter Hall‘s Long WALE Hardware Partnership of six Bunnings stores across Australia for $353.2 million.

“Having been actively pursued by numerous parties over recent years, the syndicate has decided to formally consider market approaches from a select group of investors via an off-market Expressions of Interest campaign closing in mid-March,” Mr Rooney said.

The blue-chip portfolio includes assets across five states: New South Wales, Victoria, Queensland, Tasmania, and South Australia.

The assets are primarily single-tenanted, and offer long-term lease covenants to Wesfarmers, Woolworths, and Coles. There are attractive rental growth provisions, with minimal capital expenditure required in the short to medium term.

Mr Rooney said the portfolio presents an immediate opportunity for major investors to acquire and grow a high-quality, long WALE or convenience/hybrid style retail portfolio.

“Most activity and demand for retail assets in 2021 is expected to centre around long WALE, primarily single tenanted, low volatility assets which offer transparent in-built returns, underpinned by strong covenants.

“This is expected to underpin ongoing interest in strong performing and highly resilient, food, service and grocery anchored assets which have a non-discretionary retail focus.”

Although many investors are cautious, Rooney said they remain opportunity-led, with a clear flight to quality focus and a realistic expectation that deal flow will continue to increase as border restrictions ease.

You May Also Like

Is Christmas FOMO leading to bad property buying decisions?

A sense of urgency could be leading to poor property buying decisions.

A growing number of buyers and renters are swiping right on digital inspections

While the option seems great for the time poor, it still misses the mark on delivering a feel for the area and scale of the home.

Sub-penthouse at Sapphire by the Gardens expected to fetch over $12M

A property in one of Australia’s iconic buildings has just been brought to the market, with price expectations in excess of $12 million

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko’s partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.

Strata properties as investments: All you need to know about investing in a Perth unit

As the cost of renting approaches the cost of a mortgage, more people are investing in units to escape the rental trap.