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Charter Hall Long WALE REIT


[Not for release or distribution within the United States]

Charter Hall Group (ASX:CHC) (Charter Hall or the Group) today announced that the Institutional and Broker Firm Offers for the Charter Hall Long WALE REIT (Long WALE REIT or the REIT) have been fully underwritten. In addition, binding subscriptions have been received from institutional vendors (including Charter Hall) for the balance of the IPO.

Long WALE REIT will have a forecast operating earnings yield of 6.3% annualised from the period from Allotment to 30 June 2017 and 6.4% annualised for 1H FY18. At Allotment, the REIT will have 22.9% balance sheet gearing and look through gearing of 35.0%.

A Supplementary Product Disclosure Statement for the REIT is expected to be lodged with the ASX by 28 October 2016. The adjustments to the original offer under the Product Disclosure Statement dated 27 September 2016 (PDS) are:

  • A $826.7 million market capitalisation via the issue of 206.7 million securities at $4.00 per security issue price;
  • subscriptions for securities being received from existing institutional vendors including Charter Hall, with the balance of the revised Offer being underwritten; and
  • Changes to the Offer timetable and Offer structure.

The Charter Hall DIF Reinvestment Offer and Charter Hall Group Offer under the PDS will be open to retail investors until 4 November 2016. The Group will invest up to $210 million in the REIT. Allocations under the Charter Hall DIF Reinvestment Offer and Charter Hall Group Offer may be satisfied via a reduction in the number of securities issued to the Group, which will result in a reduction in the Group’s investment in the REIT.

Investors should consider the Supplementary Product Disclosure Statement and the PDS in making any decision in connection with whether to acquire Securities in the REIT.

<View PDF version of ASX Release> 

For further information:

David Harrison 
Managing Director and Group CEO
T: +61 8651 9142

For media enquiries: 

Angus Booth 
Communications Manager
T: +61 8651 9223

For investor enquiries: 

Richard Stacker
Global Head of Investor Relations
T: +61 8651 9260