Australian property group Charter Hall Retail, has announced that it has entered into an unconditional contract for the sale of its remaining two German assets for a gross sale price of €80.8 million (about AUD$115 million), representing the value of the German property level debt facility.
The sale completes the REIT’s sell down of its European portfolio and the purchaser will assume all debt liabilities associated with the portfolio, reducing the REIT’s balance sheet gearing by 4 per cent to 33 per cent.
The sale will have no impact on the REIT’s operating earnings or net tangible assets.
The majority of the sale will settle immediately with a small minority interest of 5.1 per cent to be settled in 18 months.
The minority interest will be deconsolidated from the REIT’s balance sheet and will not carry any further rights or obligations relating to the German operations.
“We are pleased to have contracted to sell our German portfolio, which importantly finalises the sale of all our European assets and terminates our exposure to the European market. On completion of this transaction the REIT will have no material offshore exposure,” said Fund Manager Scott Dundas.