Charter Hall buys Rockdale Plaza for $142M

Charter Hall buys Rockdale Plaza for $142M

Capping off its hunt for a high-performing convenience asset, Charter Hall Retail REIT (ASX: CQR) has entered an agreement to buy south Sydney's Rockdale Plaza for $142 million.

Charter Hall Retail will undertake a fully underwritten $150 million institutional placement to fund the acquisition and will also complete a non-underwritten unit purchase plan (UPP) to eligible unitholders in Australia and New Zealand which is expected to raise a further $10 million.

Rockdale Plaza is located just south west of Sydney Airport, 12km from the CBD, and is the largest full-line supermarket in its primary trade area.

Boasting a 99.8 per cent occupancy rate, 4.5 million annual customer visitations and big cornerstone tenants including Woolworths, Big W and Aldi, Charter Hall Retail CEO Greg Chubb says the buyout is a coup for the portfolio.

"The acquisition of Rockdale Plaza offers the REIT an exceptional opportunity to acquire a high performing, convenience-based centre," he says.

"Underpinned by supermarkets and non-discretionary food and service-based uses, the acquisition aligns with the REITS investment strategy and enhances portfolio metrics to ensure we continue to deliver long-term sustainable growth in earnings for investors."

The acquisition is not expected to have a material impact on Charter Hall Retail's earnings forecasts and the group has reaffirmed its operating earnings growth of 2 per cent, in line with its previous guidance.

Information regarding the UPP will be released to eligible shareholders in around one week's time and the offer will close at 5:00pm on 2 May.

CQR shares previously closed at $4.65.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Car subscription software company Loopit eyes global markets after $3.6m seed round

Car subscription software company Loopit eyes global markets after $3.6m seed round

In a bid to enter new global markets and capitalise on the growing ...

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

As a consequence of our addiction to fast fashion, Australia sends ...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...

'The largest event since the Olympics': SXSW goes Down Under with Sydney offshoot

'The largest event since the Olympics': SXSW goes Down Under with Sydney offshoot

For the first time in its 36-year history, the famed SXSW (South by...