Charter Hall sells off non-core NZ assets
The Charter Hall Retail Real Estate Investment Trust (REIT) is closer to expanding its Australian asset base with the completion of the sale of 15 properties in its non-core New Zealand portfolio.
The sales resulted in $64.1 million of net equity proceeds being repatriated to Australia, but the REIT still has two remaining assets in the earthquake-affected region of Christchurch that have yet to be settled.
The sale of these assets has been delayed by the need for the purchaser to obtain adequate insurance cover, with the sale expected to be completed by September.
Chief executive Steven Sewell said the sale was part of the REIT’s strategy of recycling equity from its non-core United States (US) and New Zealand investments into the local Australian market to enhance earnings quality and growth.
Proceeds from the sale are expected to be invested in either the redevelopment of existing properties, the acquisition of new neighbourhood or sub-regional shopping centres, or the buy-back of the REIT’s units.
The sales have resulted in a reduction of the REIT’s balance sheet gearing of 2.1 per cent.
Following this transaction, as well as the upcoming sale of the two New Zealand Assets and the completion of the two contracted portfolio disposals in the US, 93 per cent of the REITs tangible assets are forecast to be in Australia.
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