Charter Hall Group has secured a portfolio of three metropolitan shopping centres for its unlisted institutional Charter Hall Convenience Retail Fund (CCRF) in a transaction valued at $360 million.
The acquisition increases the fund’s portfolio to 35 non-discretionary convenience retail assets and takes its gross asset value to over $3 billion.
The newly acquired portfolio comprises sub-regional convenience-based assets in major eastern seaboard markets: Bonnyrigg in Sydney, Morayfield in Brisbane, and Summer Hill in Melbourne.
The centres are 100 per cent occupied and anchored by major tenants, including Coles, Woolworths, Aldi, Kmart, and Big W.
The properties feature substantial landholdings with a low site coverage of about 35 per cent. These ‘land-rich’ values offer opportunities for increased income and capital growth through active leasing and asset management.
Following this acquisition, major tenant income will represent nearly 50 per cent of CCRF’s total portfolio net property income.
“As the leading owner of convenience retail in Australia with over $17 billion of assets and a fully integrated platform that does not outsource its services, we are seeing an acceleration of investor interest right across our retail platform,” said Ben Ellis, Charter Hall Retail’s CEO.
“Limited new supply of retail assets, coupled with Australia’s population growth, will continue to drive increasing sales productivity of our tenants, driving income growth. Our market-leading tenant customer NPS scores also highlight that a collaborative approach generates value for both tenants and our investors.”
The off-market transaction was brokered by Sam Hatcher and Nick Willis of JLL.
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