By Aimee Chanthadavong
Charter Hall Retail (REIT) has sold its Polish properties while also buying the Southgate Plaza Shopping Centre in Morphett Vale, South Australia for $60 million.
The acquisition, which is due to settle on 31 October 2013, will be funded from the estimated net proceeds of $60 million from the sale of REIT’s Polish assets.
Southgate Plaza is an established 15,844 square metre sub-regional shopping centre located approximately 21 kilometres south west of Adelaide’s CBD. It is anchored by Coles and Target with a weighted average lease expiry of eight years.
Coles, Target and Kmart Tyre and Auto contribute 45 per cent of the centre’s current base rent, with the balance from 39 specialty retailers, which operate on an average sustainable occupancy cost of 9.7 per cent.
“Southgate Plaza is a good fit with the REIT’s existing asset base and we are pleased to be adding this strongly performing centre to our Australian portfolio,” fund manager Scott Dundas, said.
“This acquisition enables us to immediately redeploy the proceeds from the sale of the Polish portfolio, in line with our stated strategy, and brings our Australian supermarket anchored portfolio up to 76 assets.”
The REIT has also sold a small asset in the United States located in Atlanta, Georgia for US$3.6 million.
“This transaction reduces the REIT’s US exposure to just two assets, one of which is under contract and the other is being marketed for sale,” Dundas said.
“We anticipate that these last two US assets will be sold before the end of this calendar year.”