SYDNEY, AUSTRALIA: In a joint announcement today, Charter Hall Group (ASX: CHC) and Charter Hall Retail REIT (ASX: CQR) revealed their equally funded joint venture (JV) trust’s acquisition of a 14.8% strategic stake in Hotel Property Investments Ltd (ASX: HPI).
The transaction, valued at $97 million, equates to $3.35 per HPI security, making Charter Hall the largest securityholder in HPI.
CHC utilized cash reserves, while CQR used cash proceeds from recent divestments.
HPI owns a portfolio of 57 Australian convenience hotel properties, primarily situated along the eastern seaboard.
These properties are leased to the Queensland Venue Company and Australian Venue Company.
The acquisition aligns with CHC and CQR’s existing portfolio of convenience net lease retail assets.
It reflects CQR’s strategy to reinvest proceeds from recent shopping center divestments into net lease convenience retail assets.
Charter Hall’s platform is a dominant player in Australia’s convenience net lease retail sector, managing over $10 billion in assets across its property funds management platform. Most of these assets feature inflation-linked annual rent reviews.
Based on HPI’s distribution guidance for FY24, the investment represents an annualized distribution yield of 5.7% and a 15% discount to HPI’s last published Net Tangible Assets (NTA) per stapled security.
Both CQR and CHC reaffirm their previously announced earnings per share (EPS) guidance for FY24.
Charter Hall Group, a leading fully integrated property investment and funds management group, leverages its expertise to create value and generate superior returns for investors.
Their diverse portfolio spans core sectors such as Office, Industrial & Logistics, Retail, and Social Infrastructure. With a commitment to partnerships and financial discipline, Charter Hall invests in places that support communities, customers, and growth.
Charter Hall Retail REIT is a major owner of properties leased to convenience retailers.