Australia: Charter Hall finishes 2019 with huge BP deal

The BP portfolio consists of the majority of BP’s owned Convenience Retail properties in Australia.

Investment fund Charter Hall (CHC) has finished 2019 with a bang by announcing a $1.25 billion investment in a portfolio of convenience stores and other assets.

The property management giant will spend $840 million to acquire a 49% stake in 225 retail sites leased to BP with a 20-year weighted average lease expiry.

The deal is part of major spending spree in which CHC swooped on biscuit brand Arnott’s Sydney factory in Huntingwood, scooping it up in a $398.9 million sale-and-leaseback deal.

The BP portfolio consists of the majority of BP’s owned Convenience Retail properties in Australia. The portfolio has a WALE of 20 years, with staggered lease expiries from 18 to 22 years and triple-net structure with annual CPI increases.

“We welcome the establishment of these significant tenant customer relationships with BP and Arnott’s. Our success in partnering with Global multi-national and Australian-based corporates in sale and leaseback activities continues to benefit our tenant customers while providing opportunities for our diverse range of investors and securityholders,” David Harrison, Charter Hall’s Managing Director and Group CEO.

The decision coming hot on the heels of Caltex Australia announcing an IPO to own the properties it leases.