The march of the Aldi supermarket chain continues across Australia as it signs its first lease with Charter Hall Retail REIT in Perth at the Secret Harbour mall.
The shopping centre is undergoing a major redevelopment.
It is the start of a long-term relationship between the supermarket retailer and the landlord. Aldi is also to open at Lendlease's Lakeside Joondalup centre.
The chain is in the midst of a $700 million expansion across Western Australia and will also target South Australia to take on the bigger chains: Wesfarmers' Coles and Woolworths.
Charter Hall Retail fund manager Scott Dundas reported the Aldi lease at the fund's full-year result, where a 5.2 per cent rise in operating profit to $110.8 million was unveiled, which was in line with market expectations.
The distribution was 27.05¢, up from 27.03¢. It will be paid on August 31.
Mr Dundas said the fund was focused on its three planks of asset recycling, asset development and capital management.
He forecast the financial year 2016 guidance for operating earnings at between 30.25¢ and 30.75¢ per unit.
Charter Hall has bought two assets, Goulburn Plaza, an hour south of Sydney, and convenience centre Katherine Oasis in the Northern Territory, from Federation Centres for $94.9 million.
To help fund the deals, Charter Hall Retail is undertaking a $50 million capital raising with institutional clients at $4.02 a security. It is expected to be completed by Monday evening, with the stock out of a trading halt by Tuesday morning.
Over the past year, the fund has sold about $190 million worth of assets and bought about the same amount in new centres.
Mr Dundas said for the year, Coles and Woolworths provided 52 per cent of the rents, but Aldi was a growth engine.
"We have seen demand rise for the discount chain and we welcome them into our portfolio," he said.
"We have a high regard for the Aldi business and brand and have agreed a first lease to form part of the redevelopment of the Secret Harbour Shopping Centre in WA. This will be completed in the 2017 financial year and will coincide with the introduction of the Aldi brand into the WA market.
"We are also working on other developments that include adding the Aldi brand and regard them as complementary to the larger supermarket formats and a welcome addition to the Charter Hall Retail centres."
In the results, sales growth was generally steady across the portfolio, with specialty sales growth of 2.8 per cent compared to 2.5 per cent for the March quarter.
Mobile phone sales again led the way (27.3 per cent) on the back of the iPhone6, with homewares, jewellery, liquor and leisure negative.
Mr Dundas said releasing spreads were 1.5 per cent positive between existing leases and new contracts and occupancy was an average 98.4 per cent.
Meanwhile, Federation Centres, which will report on Wednesday, sold four centres for a combined $153.1 million, which included the two assets bought by Charter Hall Retail.
Westside Plaza in Broken Hill in NSW was sold for $33.7 million to Sentinel Property Group and Mount Gambier Central in South Australia was sold to a private investor for $24.5 million.
