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Highlights
- Charter Hall Retail REIT and Hostplus are set to acquire Hotel Property Investments.
- The acquisition follows an increase in ownership to over 90%.
- HPI owns a portfolio of nearly 60 pubs across Australia.
Charter Hall Retail REIT (ASX:CQR) and Hostplus have made significant strides towards the full acquisition of Hotel Property Investments (ASX:HPI), a major player in the Australian pub industry. This milestone follows their successful accumulation of more than 90% of HPI’s shares. The companies now plan to complete the compulsory acquisition of all outstanding shares, a process expected to take approximately six weeks.
The acquisition process began with Charter Hall Retail increasing its stake in HPI from 20% in September to its current position of over 90%. In the initial stages, HPI’s board had recommended that shareholders reject the $3.85-per-share offer from Charter Hall Retail and Hostplus. However, after the suitors secured a majority interest, HPI’s directors changed their stance and recommended acceptance of the offer.
HPI’s portfolio is a significant one, comprising almost 60 pubs, with many properties under long-term leases to Queensland Venue Company, a joint venture between Coles Group and Australian Venue Co. These assets make HPI a notable player in the hospitality sector, especially in Queensland. The combined effort of Charter Hall Retail and Hostplus will now aim for full control, setting the stage for further growth and investment in the pub property sector.
Charter Hall Retail’s stock (ASX:CQR) saw an increase of 3.4%, reaching $3.50 as of 2:50 pm AEDT on the day of the announcement, signaling positive market sentiment regarding the acquisition. The partnership between Charter Hall Retail and Hostplus appears well-positioned to take advantage of the valuable property assets held by HPI, with the potential to create new opportunities within the hospitality property space.
As the acquisition progresses, investors and stakeholders will be watching closely to see how the transition unfolds and what future opportunities may arise from this strategic move.
