A Group-led consortium which includes two Australian superannuation funds has bought the David Jones flagship store in Sydney from its South African owner, Woolworths Holdings, for A$510m (β¬315m).
Charter Hall Long WALE REIT (CLW) will hold a 50% stake in the assets, with the remaining 50% equally split between the Charter Hall DVP Partnership and Charter Hall Group.
ΒιΆΉΣ³» Real Assets understands that investors in the unlisted Charter Hall DVP Partnership are the corporate super fund, Telstra Super, and the state-owned defined benefit fund, Victorian Funds Management Corporation.
David Jones, a premium department store in Australia, will provide a 20-year, triple-net lease, with minimum 2.5% annual rent increases supplemented by an agreed turnover rent linked to sales performance.
Avi Anger, CLW fund manager, told ΒιΆΉΣ³» Real Assets that a key investment criterion for the trust was buying assets on lease-back arrangements and on long-dated, triple-net leases.
CLWβs portfolio consists of Bunnings hardware stores, Telstra telecommunications exchange buildings and BP service stations.
Charter Hall Group CEO and managing director, David Harrison, said: βThis acquisition is consistent with our strategy in so many ways, namely securing long WALE NNN (triple net) leased assets.β
Harrison spoke of the βappetite of our managed funds and partnershipsβ to team with the Charter Hall group for βhigh convictionβ prime real estate acquisitions.
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