Charter Hall buys Rockdale Plaza for $142M
1 April 2019, Written by Paris Faint
Capping off its hunt for a high-performing convenience asset, Charter Hall Retail REIT (ASX: CQR) has entered an agreement to buy south Sydney's Rockdale Plaza for $142 million.
Charter Hall Retail will undertake a fully underwritten $150 million institutional placement to fund the acquisition and will also complete a non-underwritten unit purchase plan (UPP) to eligible unitholders in Australia and New Zealand which is expected to raise a further $10 million.
Rockdale Plaza is located just south west of Sydney Airport, 12km from the CBD, and is the largest full-line supermarket in its primary trade area.
Boasting a 99.8 per cent occupancy rate, 4.5 million annual customer visitations and big cornerstone tenants including Woolworths, Big W and Aldi, Charter Hall Retail CEO Greg Chubb says the buyout is a coup for the portfolio.
"The acquisition of Rockdale Plaza offers the REIT an exceptional opportunity to acquire a high performing, convenience-based centre," he says.
"Underpinned by supermarkets and non-discretionary food and service-based uses, the acquisition aligns with the REITS investment strategy and enhances portfolio metrics to ensure we continue to deliver long-term sustainable growth in earnings for investors."
The acquisition is not expected to have a material impact on Charter Hall Retail's earnings forecasts and the group has reaffirmed its operating earnings growth of 2 per cent, in line with its previous guidance.
Information regarding the UPP will be released to eligible shareholders in around one week's time and the offer will close at 5:00pm on 2 May.
CQR shares previously closed at $4.65.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Paris Faint