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HOSTPLUS in pub purchase partnership
HOSTPLUS has committed $151 million in equity to purchase a property portfolio made up of 54 "high quality hospitality assets" housing pubs and bottle shops.
The deal, announced earlier this week, sees the super fund partner Charter Hall Group in the $603 million purchase of the properties from Woolworth's ALH subsidiary.
The portfolio has an initial lease term of 20 years, reflecting an initial yield of 6.8 per cent, Charter Hall revealed in a statement.
"The triple lease structure and uncapped annual Australian CPI rental increases from the leading retail liquor and pub operator, provides an attractive investment proposition," Charter Hall said.
The partnership , to be known as the Long WALE Investment Partnership, has committed equity of $302 million, which together with a $340 million non-recourse debt facility from a syndicate of two banks will fund the $603 million purchase, which is due to be completed early next month.
HOSTPLUS chief executive, David Elia said the deal provided "attractive investment attributes that align with our primary objective of delivering stable returns to our members".
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
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