CHC sells $30 million CPOF units to existing CPOF investors

01/10/2009 - PDF Version Available

CHC sells $30 million CPOF units to existing CPOF investors

Charter Hall Group (CHC) announces the completion of the sale of $30 million of units in one of its managed funds, Core Plus Office Fund (CPOF). Following the previously announced contract to sell $30 million of CPOF units to the Gandel Group (Gandel) at a 20% discount to the 30 June 2009 CPOF

NTA, several existing CPOF investors have exercised their pre-emptive rights to acquire the Offered CPOF units on identical terms to those offered to Gandel. Accordingly, CHC now owns 17% of CPOF units or approximately 121 million units.

The $30 million of cash received by CHC has eliminated headstock debt in line with the pro form a balance sheet position provided as part of the FY09 Results Presentation. A loss on sale associated with this transaction of approximately $9 million will be booked in the financial year ending 30 June 2010 in line with the May 2009 announcement due to the discount to unit price, but will be excluded when determining Underlying Earnings.

CHC also announces that Gandel has committed $30 million of additional equity to CPOF. The Gandel investment provides a strong alignment with existing wholesale investors in CPOF together with their 12.2% investment in CHC.

Charter Hall's Joint Managing Director, David Harrison said "CPOF has substantially improved its capital position through the additional equity commitments and welcomes the Gandel Group as an investor in the fund".


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