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CHARTER HALL GROUP — Capital/Financing Update 2012
Oct 24, 2012
64645_rns_2012-10-24_361956d9-9e23-49b7-8470-7720634c86c2.pdf
Capital/Financing Update
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ASX/MEDIA ANNOUNCEMENT
CHARTER HALL AND TELSTRA SUPER ACQUIRE $207 MILLION BUNNINGS RETAIL PORTFOLIO
Thursday, 25 October 2012
Charter Hall Group (ASX:CHC) (Charter Hall or the Group) today announced that jointly with Telstra Super, it has entered into a contract to acquire a national portfolio of recently completed Bunnings Warehouse retail stores for $176 million from Bunnings. Charter Hall and Telstra Super have also agreed to acquire a $30.7 million Bunnings anchored property at Stafford in metropolitan Brisbane from the Charter Hall managed Direct Retail Fund.
The combined $207 million portfolio purchase reflects an initial acquisition yield of 7.6% post acquisition costs and provides 3% per annum rental increases. The Stafford property has further expansion potential and benefits from a weighted average lease expiry (WALE) of 8.5 years.
The portfolio will be held within a newly established unlisted wholesale partnership (BP Fund) owned 90% by Telstra Super and the remaining 10% equity (amounting to $10.8 million) held by the Charter Hall Property Trust co-investment portfolio. BP Fund will progressively draw $105 million from a new debt facility which together with the total equity commitment of $108 million will complete the transaction, including transaction costs.
Charter Hall will provide all investment, property, leasing and financial management services for the newly established partnership. The transaction is expected to be marginally earnings accretive in FY13 for Charter Hall.
Charter Hall’s Joint Managing Director, David Harrison, said: “We are pleased to secure such a high quality portfolio of recently completed properties designed and developed by Bunnings. The average 13.3 year WALE secured from the Bunnings portfolio will provide long term income security from a high calibre tenant.”
Telstra Super CEO, Martin Crowe, said: “The investment provides the defensive investment characteristics sought by TelstraSuper in investing in direct property. Our members will receive a consistent income stream from a quality tenant over a medium to long term. This acts as a risk mitigant and helps underpin future returns for our members.”
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The acquisition of the Bunnings portfolio, due to complete in the last quarter of 2012, increases Charter Hall’s managed Australian retail property portfolio to $2.3 billion, with approximately 2,500 tenants and circa 900,000 square metres of lettable area.
For further information, please contact:
David Harrison
David Southon
Joint Managing Director Joint Managing Director Tel: +61 2 8908 4033 Tel: +61 2 8908 4025 [email protected] [email protected]
Investor enquiries: Media enquiries: Nick Kelly Rachel Mornington-West Head of Investor Relations Head of Marketing and Communications Tel: +61 2 8908 4028 Tel: +61 2 8908 4093 - [email protected] rachel.mornington [email protected]
About the Charter Hall Group:
Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 20 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has circa $9.6 billion of funds under management across the office, retail, industrial and residential sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.
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