Charter Hall's appetite for NZ Foodtown

CHARTER Hall's Core Plus Retail Fund has returned to New Zealand for the second time with the purchase of the Foodtown shopping centre for $NZ28 million.

The acquisition reflects an initial yield of approximately 7.65% with the further benefit of guaranteed fixed annual increases throughout the term.

Located in the heart of Auckland’s CBD, covering an 8,160 sqm site, the property was built as a flagship supermarket for the Woolworths’ subsidiary Foodtown supermarket’s 4,393 sqm store, plus six retail speciality shops and parking for 190 cars.

Foodtown supermarket has 12.5 years remaining on the original 15 year lease.

Charter Hall’s joint managing director David Harrison said the acquisition is in line with Charter Hall’s strategy to include up to 20% of NZ assets in its future funds.

The acquisition was brokered by Peter Herdson and John Green of Colliers International.

Australian Property Journal