Property manager Charter Hall Long WALE REIT (ASX:CLW)
is set to splash a total of $415.4 million on four 50 per cent stakes in four office and research assets and a complete takeover of one retail property.
The $2.8 billion company has inked deals to acquire half ownerships of three government-occupied office buildings and one medical science facility in the ACT, New South Wales and Victoria. These transactions are estimated to boost the fund’s engagement with government-related occupants by 5 per cent.
The four estates’ tenants profile includes public services tenants including the Australian Taxation Office, Services Australia and Red Cross. These acquisitions will cost the property investor a total of $390 million.
On another note, Charter Hall Long Wale REIT has finalised the purchase of an asset linked with energy giant Ampol (ASX:ALD)
to add the service station in the Queensland region of Redbank Plains to the fund’s 1,300-property portfolio across the office, industrial and retail sectors.
Charter Hall plans to finance these acquisitions with an equity raising and existing debt facilities. The REIT is asking investors to contribute $250 million to the purchases. The company’s rights issue will offer shares at a fixed price of $4.65, which reflects a markdown of 16 cents or 3.3 per cent.
Charter Hall Long WALE (ASX:CLW)
has entered into a trading halt and last traded at $4.81