CHARTER HALL SNAPS UP SALAMANDER BAY CENTRE FOR $174M
Written on the 29 May 2017 by David Simmons
RETAIL investment trust Charter Hall (ASX: CQR) has purchased the regional Salamander Bay Centre in New South Wales for $174.5 million.
Salamander Bay Centre is based in Port Stephens, north of Newcastle, and comprises a single level shopping centre with a total GLA of 24,000sqm.
The centre benefits from low levels of direct competition within its captive trade area along with a resident population of 36,000 and strong tourism sector trade.
Coles, Woolworths, Kmart, Aldi, and Target Country anchor the Centre, in addition to 64 specialty tenancies.
Charter Hall Fund Manager, Scott Dundas, says the transaction is consistent with the trust's current strategy which means its portfolio is now worth more than $20 billion.
"This acquisition reflects our focus on our stated strategy to reduce exposure to smaller retail assets in order to acquire larger, higher growth assets," says Dundas.
"The investment into the Salamander Bay Centre aligns with the REIT's investment strategy and follows our recent acquisition of Arana Hills Plaza in the fast-growing metropolitan Brisbane suburb of Arana Hills.
"Strategic asset locations, convenience based, dominance within the trade area, and a diverse mix of strongly performing anchor tenants are recurring themes across our resilient non-discretionary retail portfolio."
The acquisition will initially be funded through a combination of existing and new debt facilities. It is anticipated the debt facilities will be repaid through planned divestments.
Charter Hall Retail REIT is currently trading at $4.375 per share, up 0.005 per cent.
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Author: David Simmons