Charter Hall Retail REIT (ASX: CQR) announced the acquisition of Rockdale Plaza for $142M reflecting a cap rate of 6.25%. The convenience plus asset continues to underpin CQR’s strategy of more serviced based uses whilst enhancing the portfolio metrics.
The asset is highlighted by its strategic location in the south of Sydney, 12km from the CBD. It also enjoys strong metrics such as 99.8% occupancy, WALE of 4.4 years and key retail anchor tenants such as Woolworths, Big W and Aldi.
CQR will undertake a $150M capital raising via institutional placement at an issue price of $4.51 per unit, to help fund this acquisition. The placement price is a 3% discount to CQR’s last traded price of $4.65 per unit and is at a 6.9% premium to CQR’s December 2018 net tangible assets of $4.22 per unit. In addition to an institutional placement, CQR will also undergo a unit purchase plan to eligible unitholders which is expected to raise a further $10M.