Strategic rational behind Charter Hall Retail REIT's stake buy 'confusing' - UBS

Charter Hall Retail REIT

05/04/2023 02:07

** Australia's Charter Hall Retail REIT  CQR.AX  on Monday
acquired an 18% stake in Long WALE Investment Partnership 2
(LWIP2) 
    ** Analysts at UBS say the strategic rationale for the deal
looks "confusing" in their view 
    ** Brokerage says transaction reflects co's shareholder
Charter Hall Group's  CHC.AX  strategy confusion between
maintaining transactional flows and assets growth versus
investment mandates
    ** UBS says the transaction highlights co's strategic shift
from convenience retail to less-risky portfolios
    ** Sees co to continue to trade at a discount to its mid-cap
REIT peers 
    ** Stock down 0.8% this year, as of last close 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))