Citi sees upside as Aussie Charter Hall fund adds to convenience retail portfolio

Charter Hall Retail REIT

01/12/2025 20:06

** Citi says Charter Hall Convenience Retail Fund (CCRF), in which Charter Hall Retail REIT CQR.AX holds a major stake, has added a fourth triple-supermarket-anchored centre with the purchase of Southport Park Shopping Centre on Queensland's Gold Coast

** The Southport Park is a part of a mixed-use zoned corner site and ranks among just 10 Australian neighbourhood hubs anchored by top grocers Coles COL.AX, Woolworths WOW.AX and ALDI - brokerage

** Citi expects the deal to boost accretion from CQR's CCRF stake and drive higher fee income for Charter Hall Group CHC.AX, which owns about 9.6% of CQR, according to LSEG data

** Also sees cap-rate compression and steady rental growth lifting medium-term valuations for Australian convenience retail, underpinning strong net tangible assets per-share gains for CQR in its February 2026 results

** Stock is up 28.6% YTD, as of last close

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))