Charter Hall follows up profit announcement with shopping centre purchase
Property group, Charter Hall has followed up its announcement of a $39.9 million post-tax profit for the six months to 31 December 2014, by establishing the RP6 retail partnership.
The partnership has secured the Pacific Square Shopping Centre in Maroubra for $137 million, reflecting a market capitalisation rate of 6.5 per cent.
Charter Hall joint managing director, David Harrison, said the 13,723m2 shopping centre was primed to perform strongly for investors going forwards.
"Maroubra is one of Sydney's most highly urbanised suburbs which has seen steady population growth in recent years," he said.
"With the area forecast to see further densification, following the delivery of a number of future residential developments, we believe Pacific Square will continue to perform well for our investors and the local community."
As part of the new partnership, Charter Hall has committed 20 per cent of RP6's $250 million equity commitments, $20 million of which has been slated for the Pacific Square acquisition.
Last month Charter Hall reported that it had "achieved solid organic growth" across its Australian platform, "delivering a 10.6 per cent increase in operating earnings" over the first half of the 2015 financial year.
The group reported that its focus of diversification and portfolio enhancement had driven a 10.4 per cent increase in the group's funds under management, taking the total portfolio to $12.7 billion.
AUTHOR
Nicholas O'Donoghue
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