Charter Hall Long WALE REIT, Charter Hall Retail Real Estate Investment Trust and Charter Hall Group 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.
December 11, 2019
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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 is an Australia-based real estate investment trust (REIT). The REIT is engaged in investing in real estate assets that are leased to corporate and government tenants on long term leases. The REIT's objective is to provide investors with stable and secure income and the potential for both income and capital growth through exposure to a diversified property portfolio with a long WALE. The REIT uses its property expertise to access, deploy, manage and invest equity across its core sectors, such as office, industrial and logistics, retail and social infrastructure. It is focused on maintaining and enhancing the existing portfolio through active asset and property management and to grow the portfolio through the acquisition of assets that are predominantly leased to tenants with covenants on long-term leases. The REIT has a property portfolio of approximately 1,548 properties. The REIT is managed by Charter Hall Group, an integrated property company.
Charter Hall Long WALE REIT, Charter Hall Retail Real Estate Investment Trust and Charter Hall Group 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.
CHARTER HALL LONG WALE REIT 
