Charter Hall acquires $101.7 million in convenience store assets

  • The fund acquired 18 Gull petrol stations in New Zealand
  • He also announced a 5% stake in an existing Charter Hall partnership which owns 204 Ampol stations on the east coast.
  • Site remediation issues remain the responsibility of the tenant, as is the case with all similar Charter Hall assets

Charter Hall Retail REIT (ASX: CQR) today announced the expansion of its Long WALE Convenience Retail portfolio as well as increased triple net lease income linked to the Consumer Price Index.

18 Gull service stations in New Zealand have been acquired alongside a further expansion of Charter Hall’s partnership with Ampol, acquiring a 5% stake in an existing Charter Hall partnership which owns 204 Ampol service stations in the UK’s metropolitan markets. ‘East.

The combined value of these acquisitions is $101.7 million and will be funded from existing investment capacity and is accretive to earnings.

Gull NZ’s portfolio comprises the majority of Gull’s wholly-owned network in the country, focused on metropolitan markets. 56% are in Auckland and 5% in Wellington. The WALE is 15 years, with a purchase price of NZ$64.5 million (A$58.1 million), representing a base capitalization rate of 6.4%.

This portfolio was secured off-market through a sale-leaseback agreement negotiated between Charter Hall and the seller.

The Ampol portfolio has a WALE of 17.7 years, with a purchase price of $43.6 million representing an initial yield of 4.53% before rent reviews in the second quarter of FY23.

All leases for Gull and Ampol are capital light. The acquisitions will increase CQR’s exposure to direct inflation-linked earnings by approximately 2%.

Site remediation issues remain the tenant’s responsibility, as is the case with Charter Hall’s existing service stations.

“I am delighted to announce this expansion of our Long WALE convenience store portfolio,” said Ben Ellis, CEO of Charter Hall Retail.

“These acquisitions, secured off-market, increase the revision and growth of the weighted average rents generated by the portfolio each year.

Ben Ellis. Picture provided.

“They offer CQR investors a rare opportunity to access a growing inflation-linked income stream in a highly capital-efficient way.

“They are also expanding our relationship with large retailer Ampol Ltd, while introducing Gull into our tenant mix. The acquisitions are accretive to earnings and further increase CQR’s portfolio resilience and revenue quality.

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