Charter Hall ups the ante with final HPI bid
Charter Hall Retail REIT (ASX:CQR) has increased its offer to acquire Hotel Property Investments (ASX:HPI), raising the bid from $3.65 to $3.85 per security.
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We create better futures by driving value and mutual success.
With over 28 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across core real estate sectors – office, retail, industrial and social infrastructure.
We operate with prudence and have carefully curated a diverse portfolio of over 1,100 properties, spanning everything from industrial properties, retail centres and premium office buildings, to our most recent investment in early learning centres.
Partnership and financial discipline are at the heart of our approach. Acting in the best interests of customers and communities, we combine insight and inventiveness to unlock hidden value. The impacts of what we do are far-reaching. From helping businesses succeed by supporting their evolving workplace needs, to providing investors with superior returns for a better retirement, we’re powered by the drive to go further.
ASX Code
CQR
Sector
Real Estate
Website
https://www.charterhall.com.au/investments/funds/charter-hall-retail-reit
Charter Hall Retail REIT (ASX:CQR) has increased its offer to acquire Hotel Property Investments (ASX:HPI), raising the bid from $3.65 to $3.85 per security.
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The companies that present opportunities and pitfalls in the current real estate sector within Australia.
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10 Jul 2023 - The sale marks a milestone in the partnership between Charter Hall and Telstra Super, which has generated a 12% equity internal rate of return since inception.
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Charter Hall is the broker's preferred exposure in the sector as the reopening thematic gains traction. Target price rises to $4.28 from $4.03. Outperform rating retained.
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The broker sees upside risk to shopping centre valuations and retains Outperform. Target rises to $4.18 from $4.04.
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First half results were slightly below UBS estimates. FY21 earnings guidance is for "no less than 27.3c", slightly ahead of the broker's forecast. Neutral rating and $3.60 target retained.
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Given the weighting to non-discretionary retail, Credit Suisse expects the business will be well supported by the market. The recent market update highlighted positive trends in rent collection and retail sales.
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Credit Suisse believes the company's $275m capital raising should address any market concerns about gearing. The issue is dilutive to earnings by around -20% but pro forma gearing reduces to 22.6% from 32.1%.
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Charter Hall Retail has acquired an interest in a $1.7bn portfolio of convenience retail assets leased to BP Australia. The investment is via a $137m equity interest.
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Charter Hall Retail will acquire Rockdale Plaza, providing an opportunity for both non-rental income and improved mix of stores.
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