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Charter Hall Long WALE REIT (ASX:CLW) (CLW or the REIT) today announced the divestment of the Grace Worldwide at 420 Sherbrooke Road, Willawong, Brisbane, for a total consideration of $38.73 million in line with book value.
The property is fully leased to Grace Worldwide, a record management, removals and storage company in Australasia, for a remaining period of 5.3 years (as at 31 March 2018). The sale to Grace Worldwide (Australia) Pty Ltd is as a result of the tenant exercising its right to purchase the property at market valuation under the terms of the lease. This is the only CLW property where the tenant has a call option.
Fund Manager, Avi Anger commented on the transaction:
“The divestment of this asset at book value reinforces the market value of properties in the CLW portfolio. This transaction provides the REIT a good opportunity to reinvest the proceeds of this sale into a longer WALE property consistent with the REIT’s long WALE strategy.”
This transaction does not impact on our prior FY18 earnings guidance which remains unchanged.