Charter Hall to focus on the Australian market

The Charter Hall Retail Real Estate Investment Trust is shedding its U.S. assets and focusing on the Australian market as it sold its 60 percent interest in a United States portfolio of 32 properties in the joint venture Desco and Regency groups for US$168 million.

Proceeds from the sale will be used to pay off company debt worth US$107 million and would have US$64.72 million of cash left over. The company is also planning to sell most of its remaining American investment by next year.

''The portfolio sale, which accounts for about 53 percent by value of the remaining United States investments, delivers on the [trust's] strategy of reweighing its portfolio to Australia and will increase the proportion of net tangible assets … represented by the Australian portfolio to 78 percent,''
Charter Hall Retail Real Estate Investment Trust CEO, Steven Sewell said in a statement.

''The announcement is another step in the delivery of our key objective of realizing the equity from our investments in the United States and New Zealand, with the proceeds of this sale to be reinvested into subregional shopping centers in Australia.'' Upon completion of the sale, U.S. assets will only comprise of 8 percent of the company’s net tangible assets.

Charter Hall Retail REIT is a real estate investment trust focused on investing in overseas grocery anchored shopping centers. The company currently has stakes in Australia, Europe, New Zealand and the United States.