Charter Hall Long WALE REIT, Charter Hall Retail Real Estate Investment Trust and Charter Hall Group completed the acquisition of 49% stake in National Portfolio of 225 Long WALE Convenience Retail Properties from BP Australia Pty Limited.
December 31, 2019
Share
Charter Hall Long WALE REIT (ASX:CLW), Charter Hall Retail Real Estate Investment Trust (ASX:CQR) and Charter Hall Group (ASX:CHC) entered into an agreement to acquire 49% stake in National Portfolio of 225 Long WALE Convenience Retail Properties from BP Australia Pty Limited for approximately AUD 420 million on December 12, 2019. BP Australia Pty Limited will retain 51% stake. In a related transaction, Charter Hall Long WALE REIT entered into an agreement to acquire 50% stake in a strategic industrial property located in Huntingwood from Arnott's Biscuits Pty Ltd for AUD 200 million on December 12, 2019.
Charter Hall Long WALE REIT will undertake a fully underwritten AUD 350 million equity raising comprising an institutional placement to raise approximately AUD 200 million and 1-for-15 accelerated non-renounceable entitlement offer to raise approximately AUD 150 million, to partially fund the acquisitions and associated transaction costs. The balance of the funding for the acquisitions and associated transaction costs will be sourced from a combination of existing debt facilities of Charter Hall Long WALE REIT and a new debt facility established by Charter Hall Long WALE REIT, Charter Hall Retail Real Estate Investment Trust and Charter Hall Group with a total of AUD 308 million. Charter Hall Group's equity commitment for its stake is approximately AUD 90 million, which will be funded through existing investment capacity. Charter Hall Retail Real Estate Investment Trust's equity commitment for its stake is approximately AUD 137 million, which will be funded through contracted and planned asset divestments. Charter Hall Long WALE REIT (acquired the stake on December 19, 2020. Charter Hall Group (ASX:CHC) acquired its stake in December 2019. The acquisitions will enhance key metrics of Charter Hall Long WALE REIT including the addition of a combined 23.4-year WALE portfolio, providing a 1.6 year WALE accretion to 14.9 years. J.P. Morgan acted as financial advisor to BP Australia Pty Limited.
Charter Hall Long WALE REIT (ASX:CLW), Charter Hall Retail Real Estate Investment Trust (ASX:CQR) and Charter Hall Group (ASX:CHC) completed the acquisition of 49% stake in National Portfolio of 225 Long WALE Convenience Retail Properties from BP Australia Pty Limited in December 2019.
Charter Hall Long WALE REIT is an Australia-based real estate investment trust (REIT). The principal activity of the REIT is property investment. The REIT is focused on investing in Australasian real estate assets that are predominantly leased to corporate and government tenants on long-term leases. The REIT focuses on providing investors with stable and secure income and the potential for both income and capital growth through exposure to long WALE properties. The REIT is actively managed to grow the portfolio through direct and indirect investments across multiple real estate sectors. The REIT is managed by Charter Hall Group, which is a fully integrated property investment and fund management group. It manages approximately 1,641 properties across the office, industrial and logistics and retail sectors. Its properties include The Glasshouse; 242 Exhibition Street, Melbourne; 28 MacGregor Street, 12-26 Franklin Street, and Louisa Lawson Building.
Charter Hall Long WALE REIT, Charter Hall Retail Real Estate Investment Trust and Charter Hall Group completed the acquisition of 49% stake in National Portfolio of 225 Long WALE Convenience Retail Properties from BP Australia Pty Limited.