Charter Hall buys Butler shopping centre from Woolworths
Charter Hall, for its Retail REIT (CQR), is paying Woolworths $51.2 million for Perth shopping centre Butler Central.
The deal reflects a six per cent capitalisation rate.
Settlement is due in July.
Yesterday, Charter Hall announced it paid Reading Group $90m for the Auburn Redyard retail and entertainment complex, and a neighbouring block of land, in Sydney’s west.
Woolworths, meanwhile, this month acquired shopping centre Kiama Village, on the NSW South Coast, for c$49m from ISPT.
Butler Central
Woolworths developed Butler Central at 175 Butler Blvd, Butler – about 40 kilometres north of the CBD – in 2018.
With 9000 square metres of gross lettable area, it is the anchor, operating a supermarket and BWS.
Best & Less and The Reject Shop are mini majors.
There are also 30 specialty stores and 452 on grade car parks.
“The centre benefits from being located adjacent to Butler train station, at the intersection of…Exmouth Drive and is in an established growth corridor,” an announcement by the purchaser said.
“As the dominant convenience retail centre in a growing catchment, Butler Central is an excellent addition to CQR, complementing our existing portfolio,” fund chief executive officer Greg Chubb added.
“Our ability to secure this asset off-market is a result of Charter Hall’s longstanding partnership with Woolworths,” he added (story continues below).
“The addition of Butler Central is consistent with CQR’s goal of being the leading owner of convenience retail property and will provide CQR investors with a resilient and growing income stream”.
CQR revalued
CQR also announced today that it had revalued 64pc of its portfolio measured by gross asset value.
The result is a $143m or 4.1pc uplift over six months, inclusive of forecast capital expenditure, to $3.647 billion.
The capitalisation rate compressed 22 basis points to 5.81pc.
Charter Hall Office staff appointment
Charter Hall separately today announced the appointment of Tica Hessing to the newly created role of Workplace Strategy Manager for the organisation’s $23b office platform.
The executive will move from agency Cushman & Wakefield on July 12.
Charter Hall Office chief executive officer Carmel Hourigan said “In the current operating environment, creating resilient workplaces that can respond to evolving operational, human and technology challenges is a priority for Charter Hall”.
The role will focus on identifying and forecasting global workplace trends, innovation around the future of work, furthering the co-creation process with Charter Hall’s partners and tenant customers, applying human-centered design and technology and bolstering workplace health and wellness outcomes.
Ms Tica added “most recently, in response to COVID-19, my work has focused on supporting…Return to Office transition programs, including consulting on new ways of working and redefining future workplace needs”.
Subscribe to our newsletter at the bottom of this page.
