LA Private

Charter Hall Retail REIT sells Brickworks Marketplace for $85m

Charter Hall Retail REIT (ASX:CQR), a leading owner of convenience retail properties, reported the sale and settlement of Brickworks Marketplace in South Australia for a total consideration of $85 million.

The sale, which represents a premium of $4.9 million or 6.1% over the December 2022 book valuation, underscores the continued demand and inherent quality of Charter Hall Retail REIT’s Convenience Plus retail assets.

Brickworks Marketplace, held under Charter Hall Retail Partnership 1 (RP1), was jointly owned by Charter Hall Retail REIT and Telstra Super, with CQR holding a 50% interest in the property.

The sale marks another milestone in the partnership between Charter Hall Retail REIT and Telstra Super, which has generated a 12% equity internal rate of return (IRR) since its inception in 2011. The transaction was initiated by an unsolicited offer, further attesting to the desirability and market appeal of Charter Hall Retail REIT’s assets.

Commenting on the sale, Ben Ellis, CEO of Charter Hall Retail, expressed his satisfaction with the outcome and praised the partnership with Telstra Super: “This sale is a significant achievement for CQR and our valued partner Telstra Super. The success of RP1 and its consistent performance over the years highlight the underlying quality of our retail assets. It also reflects Charter Hall’s commitment to optimising our portfolios, recycling capital, and generating positive returns for our unitholders.”

Charter Hall Retail REIT will release its FY23 results on Tuesday, 15 August, providing further insights into its financial performance and outlook.