Charter Hall Retail REIT is expanding its portfolio with three additional acquisitions of sub-regional shopping centres located in regional New South Wales for $100.7 million.
The centres include Tamworth City Plaza, Tamworth; Dubbo Shopping Centre, Dubbo; and the remaining 50 per cent interest of Lake Macquarie Fair and Mount Hutton Shopping Centre, Lake Macquarie.
Scott Dundas, fund manager of the REIT, said the portfolio is consistent with REIT’s strategy to acquire supermarket anchored shopping centres with strong income and capital growth potential and comprises the following assets.
“The acquisition of the Portfolio is in line with the REIT’s strategy of acquiring supermarket anchored centres in the $20 to $80 million asset value range that improve the quality of the REIT’s already strong Australian property portfolio,” he said.
“The Portfolio will increase our exposure to NSW regional catchment areas identified as having strong long term growth potential, whilst strengthening the balance sheet through improved gearing and liquidity. It further enhances our position as Australia’s leading owner of non-discretionary retail properties focused on providing investors with a growing and secure income stream.”
To fund the acquisition, the REIT will undertake a fully underwritten $100 million institutional placement (the Offer). In addition to the Offer, a Unit Purchase Plan (UPP) will be offered to eligible Australian and New Zealand Unitholders to provide retail Unitholders with the opportunity to participate in the equity raising. The UPP offer period will commence following the settlement of the Offer.