Charter Hall Group (ASX:CHC) (Charter Hall or the Group) is finalising preparations to list on the ASX a new real estate investment trust, Charter Hall Long WALE REIT (Long WALE REIT or the REIT).
Long WALE REIT will invest in high quality Australasian properties that are leased to corporate and government tenants on long term leases. The initial portfolio will be diversified by geography and real estate sector containing office, industrial and retail properties located in six Australian states.
The REIT will comprise an initial portfolio of 66 properties independently valued at $1,253 million with a weighted average capitalisation rate of 6.4%, a weighted average lease expiry of 12.5 years and occupancy of 100%.
Long WALE REIT will target the distribution of 100% of operating earnings and expects to provide investors with stable, recurring income through quarterly distributions. Growth in distributions is expected to be underpinned by a combination of fixed rental increases and CPI linked rental reviews. Approximately 58% of the income from the initial portfolio is subject to fixed rental increase at a weighted average annual review of 3.4%. The balance of income, approximately 42%, is subject to rental reviews linked to CPI. The weighted average rental review across the initial portfolio is estimated at 2.8%.
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