Elanor buys Gladstone Square from Charter Hall
THE Charter Hall Retail REIT has sold Gladstone Square shopping centre to the Elanor Retail Property Fund for $31.5 million on a yield of 7.25%, after successfully repositioning the property.
Charter Hall Retail REIT fund manager Scott Dunas said the asset was sold at book value and is consistent with the REIT’s strategy to transition the portfolio from smaller non-core assets towards larger convenience based supermarket anchored shopping centres.
“The divestment of this non-core property is consistent with our strategy to reduce exposure to freestanding and smaller neighbourhood assets in order to support the acquisition of larger, higher growth assets and value accretive development.
“This financial year we have divested five non-core properties for more than $100 million and with strong demand for retail assets we will continue to explore additional divestment opportunities. With the recent divestments at or above book value and the high quality investments into Highfields Village, Salamander Bay Shopping Centre and Arana Hills Plaza we are delivering on our strategy to enhance the quality of the CQR portfolio through strategic acquisitions, divestments and redevelopments in the year ahead,” Dundas said.
ERF’s fund manager Michael Baliva said the acquisition is in line with ERF’s disciplined investment strategy of investing in quality Australian neighbourhood and sub-regional shopping centres.
“The new 20 year Woolworths lease provides a strong base to allow our active asset management to position the asset as a strong investment for ERF. The acquisition will be accretive to distributable earnings, extend the weighted average debt maturity and increase the geographic diversification of the portfolio,” Baliva said.
Gladstone Square is a recently refurbished, single level neighbourhood shopping centre located in the Gladstone CBD, approximately 100kms south-east of Rockhampton and 550kms north of Brisbane.
Boasting a moving annual turnover of $46.2 million, the 6,897 sqm centre is anchored a Woolworths supermarket on a new 20-year lease expiring in May 2036. The centre is 91% occupied with one mini-major, 27 specialty tenancies and two ATMs, and on-grade parking for 302 vehicles, with a weighted average lease epxiry of 10 years.
Australian Property Journal