Charter Hall sells offshore assets at discount

Retail Real Estate Investment Trust (REIT) Charter Hall has fallen after selling its five Polish assets at a discount to their book value.

Retail Real Estate Investment Trust (REIT) Charter Hall has fallen after selling its five Polish assets at a discount to their  book value.

The stock has slipped 1% to $3.94 at 1100 AEST following the company's announcement that the sale price under the conditional contract is €174.5 million – a 4.6% reduction to the December 2012 book value.

Charter expects to net proceeds of A$60 million from the sale, which will be used to reinvest in Australian properties and lower its average interest rate swap rate for the next financial year.

Once the proceeds have been reinvested in Australia, Charter anticipates it to be neutral to its operating earnings for 2012-13.

Charter says the benefits from the sale are that operations in Australia will amount to 97% of its tangible assets, reducing offshore exposure, and the reduction in gearing.

Shares in the REIT are down more than 11% from its more than five-year high of $4.43 last month.

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