Charter Hall Retail REIT Announces Acquisition of Z Energy

Charter Hall Retail REIT has announced that it has expanded its relationship with Ampol Limited, increasing its exposure to triple net rental income (NNN) directly linked to CPI. CQR has entered into an agreement to acquire a 49% stake in a portfolio of 51 long-term rental properties from Z Energy Limited. Z Energy will retain the remaining 51% stake.

This new partnership represents an extension of CQR’s existing relationship with Ampol and follows Ampol’s acquisition of Z Energy in New Zealand. CQR’s 49% stake was acquired for A$20 million (NZ$132 million) at a cap rate of 5.50%, with leases denoted annually on NZPI (2% cap, 5% cap), net leases (NNN). And the useful life is 15.3 years. 78% of the 51 assets in the portfolio are located in urban areas.

The transaction is expected to be settled at the end of October 2022. Separately, CQR announced that it has sold its 52% stake in Coles Distribution Center, Adelaide (CDC) at book value to a fund managed by Charter Hall. Proceeds of $95.3 million net of debt at the asset level will be used to fund the acquisition of the Z Energy portfolio.

The deal is expected to be settled at the end of October 2022.