Charter Hall buys Rockdale Plaza for $142M

Written on the 1 April 2019 by Paris Faint

Charter Hall buys Rockdale Plaza for $142M

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.

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Business News Australia

 
Author: Paris Faint

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