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Charter Hall Retail REIT recently acquired a Western Australian shopping centre for $51.2 million. Image – Butler Central Shopping Centre.
  • Portfolio now worth $3.65B
  • Butler Central Shopping Centre acquired
  • Property purchased for $51.2M

Earlier this year, most retail sectors saw large losses.

Vicinity Centres (ASX: VCX) saw a valuations loss of $570 million, and the company made an overall loss of $394 million. Scentre Group (ASX: SCG), owners of Westfield in Australia, posted a statutory loss of $3.73 billion.

Player in large format retail, Aventus Group (ASX: AVN), was one of the few companies to see heartwarming figures earlier this year.

Large format retail has been particularly attractive lately, HomeCo Daily Needs REIT (ASX: HDN) acquired several large-format retail assets and successfully raised to meet the funding requirements.

As the year progressed, retail continued a cautious comeback, AMP Capital closed in on its target to deliver $1 billion of retail development on behalf of UniSuper, and APN Convenience Retail REIT (ASX: AQR) made six acquisitions across Queensland.

Valuations

Charter Hall Retail REIT (ASX: CQR) today announced its portfolio value rose 4.1% to $3.647 billion.

The $143 million increase also saw portfolio average cap rate compress 22 bps to 5.81%.

charter-hall-retail-reit-valuations-june-2021
Image – Charter Hall Retail REIT.

Greg Chubb, CEO of Charter Hall Retail, said the portfolio has proven its resilience over the past 12 months, the company now bearing the fruits of its labour.

“Our Long WALE convenience retail assets remain highly attractive … These assets have delivered CQR unitholders highly defensive and reliable earnings over the last twelve months and are now also delivering significant growth in capital values.”

Greg Chubb, CEO of Charter Hall Retail

“The unaudited impact of the valuations announced today will contribute to the increase in the estimated per security from $3.77to $4.02, a $0.25or 6.6% increase on the December 2020 NTA.”

Acquisition

CQR also acquired a $51.2 million shopping centre asset in Western Australia.

Butler Central Shopping Centre, about an hour north of Perth CBD by train, has a 6% cap rate.

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Butler Central Shopping Centre is anchored by Woolworths and other Woolworths Group shops. Image – Butler Central Shopping Centre.

Charter Hall referred to Butler Central as a ‘convenience centre’, the shopping mall is located next to the Butler train station and was developed and built by Woolworths back in 2018.

“The acquisition was negotiated off-market with Woolworths and will be debt funded utilising CQR’s existing debt facilities.”

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