Charter Hall banks premium for Vic, SA malls

Also today, we are reporting Haben bought the balance of Stockland Townsville.

Charter Hall has quietly sold two shopping centres after 10 years.

Charter Hall paid ISPT $60 million for Southgate Square.

In the biggest deal, the manager, on behalf of the Retail REIQ (CQR) is banking $134.5 million – a circa six per cent yield – for Rosebud Plaza (pictured, top) on Victoria’s Mornington Peninsula.

It paid the redundant CFS Retail Trust $100m – a c7.8pc return – later undertaking a $30m renovation (it was appraised at $125m in 2019).

With 24,017 sqm, it is the only major enclosed shopping centre within 20 kilometres.

Rosebud, 60 kilometres south of Melbourne’s CBD, is home to c15,000.

The shire meanwhile houses c170,000 ballooning over holiday periods and summer months.

Southgate Square

In Adelaide’s south west Morphett Vale meanwhile, Charter Hall has sold Southgate Square for $91m – a circa six percent yield and a rise on the $60m it paid ISPT.

Like Rosebud Plaza, this asset, with 15,844 sqm, is trading for book value to a private investor following an off-market campaign.

Proceeds will repay debt; upon settlement of the Adelaide property in February and Rosebud Plaza in June, the trust’s gearing is set to drop from 29pc to 25 (story continues below).

“These sales demonstrate CQR’s ongoing active asset management and focus on improving portfolio quality while maintaining balance sheet strength,” Charter Hall Retail chief executive officer, Ben Ellis, said.

Also today, we are reporting Harold and Ben Finger’s Haben outlaid $123.5m for the half stake it didn’t control – and management rights – of Stockland Townsville.

CQR reweighs

The Southgate Square and Rosebud Plaza disposals come six months since the trust settled on the sale of Torrensville’s Brickworks Marketplace for $85m, reflecting a 5.43pc yield.

That buyer, FRP, also bought a Western Australian mall, Carnavon Central, from the manager in 2020, outlaying $16.1m.

Two years ago meanwhile CQR paid Woolworths $51.2m for Butler Central, 40 kilometres north of Perth.

JLL’s Sam Hatcher and Nick Willis brokered the Rosebud Plaza deal.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.