Charter Hall Retail REIT announced it has completed the sale of its Polish properties and executed a contract to acquire the Southgate Plaza Shopping Centre in Morphett Vale, South Australia for $60 million. The acquisition price reflects a fully leased year one yield of 7.5%.
Charter Hall Retail has saled 5 retail properties to Tristian Capital Partners for 174,5 millions euro.
The Southgate Plaza acquisition is due to settle on 31 October 2013 and will be funded from the estimated net proceeds of $60 million from the sale of the REIT’s Polish assets, which has now completed at the agreed price of €174.5 million. Southgate Plaza is an established 15,844 square metre sub-regional shopping centre located approximately 21 kilometres south west of Adelaide’s CBD.
Fund Manager, Scott Dundas, said: “Southgate Plaza is a good fit with the REIT’s existing asset base and we are pleased to be adding this strongly performing centre to our Australian portfolio. This acquisition enables us to immediately redeploy the proceeds from the sale of the Polish portfolio, in line with our stated strategy, and brings our Australian supermarket anchored portfolio up to 76 assets.” The REIT has also sold a small asset in the United States located at Powers Ferry in Atlanta Georgia for US$3.6 million. The sale was completed on 4 October 2013 at pricing 20% above the 30 June 2013 book value of US$3.0 million and has resulted in the repatriation of A$3.7 million in net proceeds to the REIT. Mr Dundas added: “This transaction reduces the REIT’s US exposure to just two assets, one of which is under contract and the other is being marketed for sale. We anticipate that these last two US assets will be sold before the end of this calendar year.”
