Property trust Charter Hall Office REIT (ASX:CQO) has executed contracts to sell its entire remaining US portfolio for US$1.71 billion ($1.59 billion).
The sale to entities affiliated with Beacon Capital Partners represents a $35 million premium to the book value of the properties at the end of December 2010, Charter Hall said.
After transaction costs, debt repayment and other expenses, the company expects net proceeds of around US$575 million. The amount booked in AUD will be dependant on the exchange rate.
Net proceeds will likely be returned to shareholders through a special distribution.
Charter Hall CEO Adrian Taylor said the company had pursued the sale in line with its goal of reweighting its portfolio to Australia.
“Following completion of the sales, CQO's portfolio will constitute... well-leased Australian office assets located in capital cities...with a book value as at June 30 of $1.9 billion,” he said.
The deal follows the disposal of two US non-core assets, announced in June along with a joint purchase of eight Woolworths shopping centres for $284.7 million.
CQO shares closed unchanged on Wednesday at $3.300.
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