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Charter Hall Retail Management Limited, as responsible entity of Charter Hall Retail REIT (ASX:CQR) (CQR or the REIT) today announces that:
The REIT has entered into an agreement to acquire a 100% interest in Rockdale Plaza for $142 million1, reflecting a capitalisation rate of 6.25%3. Rockdale Plaza is a dominant Convenience Plus asset situated in a strong, established and growing catchment and comprises the largest full-line supermarket in the primary trade area, strong performing mini-majors and convenience focused specialty stores.
Key highlights of the Acquisition include:
Charter Hall’s Retail CEO, Greg Chubb said:
“The acquisition of Rockdale Plaza offers the REIT an exceptional opportunity to acquire a high performing, convenience-based centre. Underpinned by supermarkets and non-discretionary food and service-based uses, the Acquisition aligns with the REIT’s investment strategy and enhances portfolio metrics to ensure we continue to deliver long-term sustainable growth in earnings for investors”.
Property details at December 2018
12km south west of Sydney CBD
Woolworths, Big W, Alidi, 7 mini majors, 46 speciality stores
Total MAT growth
Speciality MAT growth
Speciality occupancy cost
Annual customer visitations
4.5m (up 3% yoy)
To partially fund the Acquisition and associated transaction costs, the REIT is undertaking a fully underwritten institutional placement to raise $150 million. The Placement is fully underwritten by UBS AG, Australia Branch.
The Placement will be issued at a fixed price of $4.51 per unit, which represents a:
Units issued under the Placement will rank equally with existing CQR Units and will be entitled to the full distribution for the half year ending 30 June 2019.
The Placement is within CQR's placement capacity under ASX listing rule 7.1 and unitholder approval is not required.
Unit Purchase Plan
Eligible unitholders in Australia and New Zealand will be invited to subscribe for up to $15,000 of new units, free of brokerage and transaction costs, via a UPP. The new units will be offered at the same price as the Placement of $4.51 per unit. The UPP will not be underwritten and is expected to raise up to $10 million4. New units issued under the UPP will rank equally with existing CQR units and will be entitled to the full distribution for the half year ending 30 June 2019.
Further information on the UPP will be lodged with the ASX and sent to eligible unitholders on or around 8 April 2019.
To read the document, click on the download link above.
Click to view the Market Announcement
1 Excluding transaction costs.
2 CQR may (in its absolute discretion) in a situation where total demand exceeds $10 million, decide to increase the amount to be raised under the UPP to reduce or eliminate the need for scale back. CQR reserves the right to scale back applications under the UPP at its discretion.
3 The vendor has also agreed to provide $0.5m of income support which can be applied at CQR’s discretion.
4 CQR may (in its absolute discretion) in a situation where total demand exceeds $10 million, decide to increase the amount to be raised under the UPP to reduce or eliminate the need for scale back. CQR reserves the right to scale back applications under the UPP at its discretion.
5 As detailed in Annexure A of the investor presentation, excluding any proceeds from the UPP.