Charter Hall Retail REIT (ASX:CQR) made an off-market takeover with Australian superannuation fund Hostplus for Hotel Property Investments (ASX:HPI) for AU$3.65 per share, according to a Monday filing to the Australian bourse.

Charter Hall and Hostplus will contribute 50% each for the cash consideration and share 50% of the acquiring entity. The acquisition rationale is that HPI's portfolio of net lease retail assets complements Charter Hall's existing portfolio, the filing stated.

The offer is subject to HPI shareholder acceptance at a 50.1% minimum condition. Charter Hall recommends HPI shareholders accept the offer, according to a separate Monday filing.

HPI told the Australian bourse Monday that it recommends shareholders reject and take no action on the offer, calling it "opportunistic" and "not compelling" and that it materially undervalues the company.

Hotel Property Investments' shares rose 5.7% in recent trade.