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Charter Hall Retail REIT sale of Home HQ Nunawading Victoria

15/07/2013

Charter Hall Retail REIT (ASX:CQR) (the 'REIT') today announced that, together with its 50% co-investment partner, Charter Hall Group, it has settled on the sale of Home HQ Nunawading for $48 million (100% value) to a private investor. The gross sale price is in line with an independent June 2013 valuation and represents a market equivalent capitalisation rate of 10.7%.

This asset was the REIT's last remaining Household Retail property following the sale of the Mile End Centre in Adelaide in December 2012. The sale will result in the repayment of the REIT's only FY14 debt maturity, a $27.5 million (100% share) property level debt facility maturing in November 2013, and deliver $10 million in net equity proceeds to the REIT.

It is expected that these net proceeds will be reinvested into higher quality Australian acquisitions or redevelopments, albeit at lower initial returns and subject to timing of redeployment.

Scott Dundas, Fund Manager for the REIT, said: "The sale of Home HQ Nunawading is in line with our strategy of recycling assets to enhance the quality of the REIT's portfolio. Net proceeds will be reinvested into supermarket anchored neighbourhood and sub-regional shopping centres with solid income and capital growth prospects or redevelopment opportunities for assets currently held within the portfolio."

For further information, please contact:

Scott Dundas
Fund Manager
Charter Hall Retail REIT
T: +61 8295 1009
scott.dundas@charterhall.com.au
Philip Schretzmeyer
General Manager Finance
Charter Hall Retail REIT
T: +61 8295 1023
philip.schretzmeyer@charterhall.com.au
Investor enquiries:

Kylie Ramsden
Head of Listed Investor Relations
Charter Hall
T: +61 2 8295 1016
kylie.ramsden@charterhall.com.au
Media enquiries:

Rachel Mornington-West
Head of Marketing and Communications
Charter Hall
T: +61 2 8908 4093
rachel.mornington-west@charterhall.com.au

About Charter Hall Retail REIT:

Charter Hall Retail REIT is a leading listed real estate investment trust with a portfolio of predominantly Australian high quality supermarket anchored neighbourhood and sub-regional shopping centres.

Charter Hall Retail REIT is managed by Charter Hall Group (ASX:CHC), one of Australia's leading fully integrated property groups, with over 22 years' experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has $10 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth. The Group's success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its usiness approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group. For further information on Charter Hall Group and Charter Hall Retail REIT go to www.charterhall.com.au

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