Charter Hall Retail REIT agreed to buy the Campbellfield Plaza retail property in Melbourne's northern suburbs for A$74 million, reflecting a fully let yield of 6.5%
The transaction, which is scheduled to complete in March 2019, reflects the Australian real estate investment trust's strategy of transitioning its portfolio toward larger, convenience-based, supermarket-anchored shopping centers from smaller noncore assets, it said in a release.
The Campbellfield Plaza center, which sits on a 58,600-square-meter site, spans 17,900 square meters and offers long-term redevelopment potential. Kmart, Coles, Aldi and Officeworks anchor the center, along with 19 specialty stores. The property has parking space for more than 800 cars.
Charter Hall said it will fund the transaction using proceeds from the recent sales of the Coomera Square asset in Queensland and a freestanding Woolworths site in the New South Wales town of Young.