Charter Hall Long WALE REIT (ASX:CLW) has expanded its portfolio with the purchase of Bunnings Warehouse in South Mackay, Queensland.
The real estate investment trust purchased the property for a total consideration of $28.5 million.
The 2.96-hectare freestanding property, is on a 12-year net lease to Bunnings Group Limited (ASX:BWP).
At the time of expected settlement in July 2017, 9.4 years will remain on the lease.
Charter Hall Long WALE REIT says it’s a compelling investment opportunity and also has 3% annual increases in rent.
The purchase will grow the porfolio by 2.1% to $1.36 billion.
Shares in Charter Hall Long WALE REIT (ASX:CLW) opened flat at $4.03.