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Telstra Super, Charter Hall buy Woolworths assets

Telstra Super, Charter Hall buy Woolworths assets

Telstra-directed (ASX:TLS) super fund Telstra Super and property trust Charter Hall Office REIT (ASX:CQO) have completed a $284.7 million joint purchase of eight Woolworths shopping centres.

The two funds expect the acquisition of the portfolios of the shopping centres to deliver a first year running yield of 8%.

Charter Hall has also completed the disposal of two US non-core assets for a combined US$17.7 million ($16.65 million).

Charter Hall CEO Steven Sewell said the Woolworths purchase and US disposals “positions the REIT with approximately 90% of its net tangible assets in Australia and balance sheet gearing of approximately 38%.”

The company is awaiting consent for a further US$64 million worth of asset sales in the United States.

In late May, Orange Capital announced plans to call a shareholder meeting to vote to have Charter Hall Office Management removed as the responsible entity for the Charter Hall Office REIT. But Charter Hall Group (ASX:CHC), the largest shareholder in the REIT, has warned it does not consider such wind-up action to be in the interest of shareholders.

The roughly $10 billion Telstra Super fund and Charter Hall Office REIT have a preexisting partnership.

CQO shares grew 0.84% in Thursday's trading to $3.620.

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Tags ASX:CHCCharter Hall Office REITtOrange CapitalCharter Hall GroupASX:TLSTelstraASX:CQO

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