Busselton pub sold to Charter Hall fund

One of institutional property group Charter Hall’s investment funds has bought The Ship Inn in Busselton, part of a $23.2 million sale and leaseback deal with Australia’s biggest pub owner, ALH Group.

Charter Hall said the deal, which comprised the Busselton pub and two hotels in Queensland, reflected a yield of 6.26 per cent.

Once the deal settles, Charter Hall said ALH Group would sign fresh 15-year leases for the pubs, with the terms matching the balance of properties in the group’s ASX-listed Long WALE Investment Partnership (LWIP).

Charter Hall jointly owns LWIP, which has a portfolio of 77 properties valued at more than $1.36 billion with superannuation fund Hostplus.

Charter Hall fund manager Avi Anger said the three hotels were strongly performing, with all of them including BWS or Dan Murphy’s outlets.

“This transaction extends LWIP's weighted average lease expiry and highlights our ability to secure high-quality properties, leased to quality tenants with strong covenants.”

Charrter Hall did not disclose how much it paid for each of the three hotels, but the Ship Inn property, which includes 24 one-bedroom short-stay apartments, was last sold in 2012 for $4.05 million, according to RP Data.

Other Western Australian assets in LWIP include industrial properties in Canning Vale, Welshpool, Lansdale and Boulder and the Hyde Park Hotel in North Perth, which is also leased back to ALH.