Charter Hall Retail sells 2 Centres
Charter Hall Retail REIT (CQR or the REIT) today announced that it has exchanged contracts to divest two assets for a total consideration of $38 million.
The properties contracted for sale include Springfield Fair in Queensland, a Coles anchored centre with a 4.2 year WALE and Goonellabah in northern NSW, a Coles and Target Country anchored centre with a 3.6 year WALE.
Settlement of Goonellabah will occur during January 2018 and the settlement of Springfield Square is scheduled to occur no earlier than February 2018. The combined total sale price reflects a 10.1% premium to book value.
Charter Hall Retail CEO, Greg Chubb commented on the REIT’s divestment strategy and reshaping of the portfolio. “Our transactions during the past 12 months demonstrate our ability to execute on our strategy of recycling capital into potential higher growth assets to build a more resilient non-discretionary retail portfolio. This strategy has enhanced the quality of the REIT’s portfolio and increased the average asset value from $44.7 million as at 30 June 2017 to $50 million.”
Charter Hall advise that barring any unforeseen changes to operating conditions, FY18 earnings guidance remains unchanged at 30.2cpu to 30.6cpu.