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Charter Hall Snaps Up Campbellfield Plaza for $74m

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ASX-listed Charter Hall has landed Campbellfield Plaza for $74 million after multiple bids from offshore parties.

The centre in the northern suburbs of Melbourne was sold by industry super fund developer ISPT.

The 17,900sq m centre has low site coverage on a 58,600sq m site offering Charter Hall long term redevelopment potential.

JLL’s Simon Rooney, Stuart Taylor and Tom Noonan brokered the deal reflecting a fully let yield of 6.5 per cent.

“Retail and wholesale unlisted funds and private investors have also been driving recent sub-regional acquisitions with the view to extract value from optimising the tenant mix and utilising surplus land,” JLL director of retail investments Victoria Stuart Taylor said.

JLL noted the deal lifted their tally of retail assets sold this year to $7.2 billion.

Related: Sub-Regional Shopping Centres Struggle in New Retail Landscape

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Charter Hall will now fund the sale proceeds from recent retail centre sales at Commera in Queensland and Young in New South Wales.

Chief executive Greg Chubb said Campbellfield was a dominant shopping centre, underpinned by a secure income profile for Charter Hall.

“The investment aligns with the REIT’s investment strategy and follows our other acquisitions in fast growing metropolitan locations,” Chubb said.

Earlier this year Charter Hall's ASX-listed Retail REIT, in partnership with its unlisted Prime Retail Fund, acquired another Victorian regional centre, the Gateway Plaza in Leopold for $117 million.

Charter Hall has also been active in central Melbourne picking up 555 Collins Street in the western core of Melbourne’s CBD.

The off-market acquisition of $140 million, was completed by Charter Hall's $4.5 billion wholesale prime office fund (CPOF).

Earlier this year, fellow property giants Vicinity Centres announced plans for the sale of up to $1 billion of sub-regional and neighbourhood shopping centres.

The Melbourne-based investment trust, which currently holds approximately $6.9 billion worth of shopping centres around Australia, said it would use the sale proceeds from its non-core portfolio to reinvest in flagship development opportunities.

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Article originally posted at: https://theurbandeveloper.com/articles/charter-hall-snaps-up-campbellfield-plaza-for-74m