Charter Hall Retail (ASX:CQR) has contracted the sale of up to $225.5 million of its shopping centre assets in Victoria and South Australia.
The $2.02 billion market capitalisation company says it will sell its South Australian shopping centre, Southgate Square, for $91 million, and its Victorian shopping centre, Rosebud Plaza, for $134.5 million.
Charter Hall reports both sales follow unsolicited off-market offers and are in line with its June 2023 book valuations.
The company notes the Southgate sale is expected to settle in February 2024, while Rosebud is scheduled for completion in June 2024.
Further, a pro-forma balance sheet gearing is expected to reduce from 29% to about 25% post-settlement.
Charter Hall Retail Chief Executive Officer (CEO) Ben Ellis says the sales demonstrate the company’s ongoing active asset management and focus on improving its portfolio quality.
“The sale proceeds of $225.5 million less transaction costs will strengthen the balance sheet optionality that CQR has traditionally had through the ownership of liquid convenience retail assets.”
“The sale proceeds … will strengthen the balance sheet optionality that CQR has traditionally had through the ownership of liquid convenience retail assets”
Charter Hall Retail is managed by Charter Hall Group (ASX:CHC), which represents one of Australia’s fully integrated property investment and funds management groups.
The company currently holds a diverse portfolio of ‘high-quality’ properties across its core sectors — office, industrial & logistics, retail, and social infrastructure.
Images: Charter Hall Retail