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Charter Hall Retail Management Limited, as responsible entity (“Responsible Entity”) of Charter Hall Retail REIT (ASX: CQR) (‘CQR’ or ’the REIT’) has successfully completed the fully underwritten institutional placement announced on Monday, 27 April 2020 (‘Placement’), raising $275 million through the issue of approximately 94.8 million new units (‘New Units’) at an issue price of $2.90 per unit.
The New Units will settle on Thursday, 30 April 2020, with allotment and normal trading to occur on Friday, 1 May 2020. New Units issued under the Placement will rank equally with existing CQR Units and will be entitled to the distribution for the half year ending 30 June 2020.
CQR confirms that, pursuant to ASX Listing Rule 7.1 and the Temporary Extra Placement Capacity measures implemented under ASX Listing Rule 18.1, the Placement is within CQR’s Temporary Extra Placement Capacity of 25% and unitholder approval is not required.
Unit Purchase Plan
CQR is also undertaking a non-underwritten Unit Purchase Plan (‘UPP’) capped at $25 million.1 Under the UPP, eligible unitholders in Australia and New Zealand will be invited to subscribe for up to a maximum of $30,000 in new units, free of brokerage or transaction costs. The new units will be offered at the same price as investors in the Placement, being $2.90 per unit. New units issued under the UPP will rank equally with existing units and will be entitled to the distribution for the half year ending 30 June 2020.
Further information on the UPP will be lodged with the ASX and sent to eligible unitholders on or around Tuesday, 5 May 2020.
1 The cap on the UPP of $25 million is considered appropriate to provide the opportunity for the majority of CQR’s retail unitholders to achieve a pro rata allocation having regard to the total equity raising size (including the Placement and UPP), the construct of CQR’s register and historical take-up rates in UPPs. CQR may, in its absolute discretion, scale back applications over this amount or apply a higher cap to the UPP and scale back applications over the higher cap.
Recommencement of trading
CQR units are expected to resume trading on the ASX from market open today (Tuesday, 28 April 2020).
Further details on Placement
Further details of CQR’s approach it took in identifying investors to participate in the Placement and how it determined their respective allocations in the Placement will be announced to the ASX by Friday, 8 May 2020 in accordance with the ASX Class Waiver for Temporary Extra Placement Capacity dated Wednesday, 22 April 2020.
Announcement authorised by the Chairman