Charter Hall Retail (REIT) has invested $40.1 million into Albany Creek Shopping Centre, Brisbane.

CEO REIT Steven Sewell said the Albany Creek Shopping Centre is a positive addition to the company’s portfolio of existing sub-regional and neighbourhood centres.

“The property will be fully serviced by the in-house expertise of Charter Hall’s property management division and, as a direct result of this active management, we forecast it will be a positive contributor to the REIT’s portfolio, enhancing prospects for long term income and capital growth for our unit-holders,” he said.

The neighbourhood shopping centre is anchored by a full line Coles supermarket, secured on a new 15 year lease, and comprises of 34 specialty retailers and more than 500 car spaces.

As part of the deal the Coles supermarket is to be substantially refurbished prior to the end of 2011 at no cost to the REIT. The refurbishment will improve the overall customer amenity, which is expected to provide support to the specialty retailers.

Albany Creek Shopping Centre has above average occupancy of 99.2 per cent with annual specialty rental reviews averaging 4.6 per cent. These metrics, along with a higher than average weighted average lease expiry of 9.7 years, are forecast to underpin solid income growth and stability in the current environment.

The acquisition will be funded using equity recycled from offshore sales, available debt capacity and a new tranche of the existing debt facility with National Australia Bank.