Charter Hall Long WALE REIT (ASX:CLW) and Charter Hall Retail Real Estate Investment Trust (ASX:CQR) entered into an agreement to acquire a 49% stake in Portfolio of 70 Long WALE NNN Convenience Retail Properties in New Zealand from BP Oil New Zealand Limited for approximately NZD 260 million on September 10, 2020. The purchase consideration is CLW and CQR's combined value for the 49% interest in the portfolio. Charter Hall Retail REIT's funding commitment for its 50% interest is approximately NZD 130.8 million.

Charter Hall Retail will utilize available borrowing capacity denominated in NZD to fund the transaction. The transaction will be through a sale and leaseback to BP Oil New Zealand Limited. Upon completion, BP Oil New Zealand Limited will retain the remaining 51% stake in the portfolio.

Charter Hall Long will finance it's portion partially through an institutional placement of NZD 65.4 million (AUD 60 million) and the remaining NZD 69.5 million (AUD 63.8 million) will be funded through existing debt facilities. The transaction is subject to the approval of the New Zealand Overseas Investment Office. As on December 22, 2020, New Zealand Overseas Investment Office (OIO) has approved the acquisition.

The transaction is expected to settle today. The transaction is FY21 Operating EPS guidance of no less than 29.1 cents per security reflecting growth over FY20 of no less than 2.8%. J.P. Morgan acted as financial advisor while Charles Ashton, Harry Beardall, Patrick McGregor, Ally Hammond, Marc Kemp, Anisha Desor, Mark Kidston, Natalie So, Craig Milner and Simpson Grierson of Allens acted as legal advisor to BP in the transaction.