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A Sydney-based real estate investment trust (REIT) is using the proceeds from two recent regional property sales to buy a strategic shopping centre in Melbourne's north.
Charter Hall Retail REIT (ASX: CQR) has executed an unconditional contract to buy Campbellfield Plaza in northern Melbourne for $74 million, with the transaction expected to be settled in March next year.
The shopping centre is 14km from the Melbourne CBD with 80 per cent of its income coming from anchor tenants including one of Victoria's strongest performing Kmart stores, Coles, Aldi and Officeworks.
As there is a site coverage of just 17,900sqm out of a total of 58,600sqm, the trust sees good redevelopment potential in the long term.
The move forms part of a strategy towards larger convenience-based shopping centres with "strong demographic profiles where it can add value through active management".
Charter Hall Retail CEO Greg Chubb says the acquisition is underpinned by a secure income profile.
"The investment aligns with the REIT's investment strategy and follows our other acquisitions in fast growing metropolitan locations," says Chubb.
"The REIT remains well capitalised post this acquisition and recent dispositions with existing cash and debt facilities forecast to be approximately $150 million to take advantage of any future opportunities that may arise."
Business News Australia
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