Charter Hall Retail REIT is paying $74 million for the Campbellfield Plaza shopping centre in Melbourne’s north.
The 17,900 square metre complex on a 5.9 hectare block at the busy corner of Hume Highway and Mahoneys Road was listed by ISPT in September with price hopes of $80-million plus.
Based on the asset’s annual approximate rental return, Charter Hall is acquiring Campbellfield Plaza on a 6.5 per cent market yield.
“The transaction is consistent with the REIT’s strategy to transition the portfolio from smaller non-core assets towards larger convenience-based supermarket anchored shopping centres with strong demographic profiles where it can add value through active management,” Charter Hall said in this statement.
Its chief executive officer Greg Chubb said Campbellfield Plaza offered “an exceptional opportunity to acquire a high quality dominant convenience-plus shopping centre, underpinned by a secure income profile”.
Last month we reported that Charter Hall sold two regional retail assets – in Coomera, Queensland, and Young, New South Wales, for a total of $76.1 million.
Mr Chubb said those sale proceeds will be put toward the acquisition of Campbellfield Plaza.
“The REIT remains well capitalised post this acquisition and recent dispositions with existing cash and debe facilities forecast to be approximately $150 million to take advantage of future opportunities that may arise,” Mr Chubb added.
Campbellfield Plaza generates 80 per cent of gross income from occupants including Kmart, Coles, Aldi and Officeworks. It also includes 19 specialty tenancies.
Mr Chubb noted that the site – with an 800-bay open-air car park – “has low site coverage…offering long term redevelopment potential”.
Charter Hall Retail REIT’s acquisition of Campbellfield Plaza is due to settle in March, 2019.