Charter Hall Retail REIT Successful Completion of $100 million Institutional Placement

Not for release to US wire services or distribution in the United States

Placement

Charter Hall Retail Management Limited, as responsible entity of Charter Hall Retail REIT (ASX: CQR) (‘CQR’ or ’the REIT’) has successfully completed the fully underwritten institutional placement announced on 20 February 2020 (‘Placement’).

Due to strong demand from new and existing institutional investors, the size of the Placement was increased from $90 million to $100 million. The additional proceeds raised will be used to repay debt. Including the increased size of the Placement, CQR’s 31 December 2019 pro forma:

• Balance sheet gearing is forecast to be 31.7% (previously 32.1%); and
• Look through gearing is forecast to be 36.7% (previously 37.0%).

As a result of the Placement, approximately 20.8 million new units (‘New Units’) will be issued at an issue price of $4.81 per unit.

CQR confirms its guidance for FY20 operating earnings growth of 2.3% over FY19.

The New Units will settle on Tuesday, 25 February 2020, with allotment and normal trading to occur on Wednesday, 26 February 2020. New Units issued under the Placement will rank equally with existing CQR Units and will be entitled to the full distribution for the half year ending 30 June 2020.

CQR confirms that, pursuant to ASX listing rule 7.1, the Placement is within CQR’s placement capacity of 15% and unitholder approval is not required.

Unit Purchase Plan

CQR is also undertaking a non-underwritten Unit Purchase Plan (‘UPP’) capped at $10 million¹ Under the UPP, eligible unitholders in Australia and New Zealand will be invited to subscribe for up to $15,000 of new units, free of brokerage or transaction costs. The new units will be offered at the same price as the Placement of $4.81 per unit. New units issued under the UPP will rank equally with existing CQR units and will be entitled to the full distribution for the half year ending 30 June 2020.

Further information on the UPP will be lodged with the ASX and sent to eligible unitholders on or around Friday, 28 February 2020.

^{1 CQR may, in its absolute discretion, scale back applications over this amount or apply a higher cap to the UPP and scale back applications over the higher cap.}

Recommencement of trading

CQR units are expected to resume trading on the ASX from market open today (Friday, 21 February 2020).

Announcement authorised by the Chair

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