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CHARTER HALL GROUP — Capital/Financing Update 2012
Apr 15, 2012
64645_rns_2012-04-15_bef0bc07-105f-4511-bd79-2500f7f54f6b.pdf
Capital/Financing Update
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ASX/MEDIA ANNOUNCEMENT
FINALISATION OF CONSORTIUM AGREEMENTS
Monday, 16 April 2012
Charter Hall Group (ASX:CHC) (the Group or Charter Hall) notes the announcement made by Charter Hall Office REIT (ASX:CQO) (CQO) on Friday, 13 April 2012 and confirms the Group has entered into the investment management agreement for CQO (post the implementation of the privatisation) with Reco Ambrosia Pte Ltd (an affiliate of Government of Singapore Investment Corporation Pte Ltd) and the Public Sector Pension Investment Board of Canada.
The de-listing of CQO (to be renamed the Charter Hall Office Trust (CHOT)) has no material impact on Charter Hall’s earnings guidance for FY12.
Following receipt of its share of all United States proceeds totaling approximately $56 million[1] (including the “hold back amounts”) and the reinvestment of approximately $16 million in CHOT, Charter Hall will have reduced its current co-investment of $181 million[2] in CQO to a co-investment in the unlisted CHOT of approximately $141 million (representing 15% of CHOT). The Group will use the net cash proceeds of approximately $40 million[3] to recycle into other investment opportunities.
On implementation of the privatisation, Charter Hall will review the carrying value and treatment of the management rights of CQO to reflect CQO moving from a listed REIT to a wholesale unlisted trust. As noted in the CQO announcement, implementation is expected on 30 April 2012.
1 This represents Charter Hall’s 10% interest in CQO and an assumed exchange rate of AUD1.00:USD1.026 consistent with CQO’s announcement dated 11 April 2012. 2 Charter Hall’s investment in CQO as at 31 December 2011 .
3 Assuming an exchange rate of AUD1.00:USD1.026.
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For further information, please contact:
David Harrison
Joint Managing Director Tel: +61 2 8908 4033 [email protected]
David Southon
Joint Managing Director Tel: +61 2 8908 4025 [email protected]
Investor enquiries:
Kylie Ramsden
Head of Listed Investor Relations Tel: +61 2 8295 1016 [email protected]
Media enquiries:
Rachel Mornington-West
Head of Marketing and Communications Tel: +61 2 8908 4093 - 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 20 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $10 billion of funds under management across the office, retail, industrial and residential sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide, Perth, Warsaw and Chicago.
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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