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Charter Hall WALE Limited (Responsible Entity), as responsible entity of Charter Hall Long WALE REIT (ASX:CLW) (CLW or the REIT) today announced that:
The REIT has entered into an agreement for the following acquisitions:
The total consideration for the Acquisitions is $117.8 million (excluding transactions costs), reflecting a weighted average 6.9% initial passing yield. The Acquisitions feature:
|Pre Portfolio acquisition||Acquisitions||Post Portfolio acquisition|
|Number of Properties||83||2||85|
|Property Valuation (A$m)||1,508||117||1,625|
|WALE||11.2 years||15.3 years||11.5 years|
|Fixed Rent Reviews||58%||100%||62%|
The REIT will undertake a fully underwritten institutional placement to raise approximately $60 million (Placement) to fund the Acquisitions and associated transaction costs. The Placement is underwritten by UBS AG, Australia Branch.
The Placement will be issued at a fixed price of $4.04 per security, which represents a:
Securities issued under the Placement will rank equally with existing CLW Securities and will be entitled to the full distribution for the three months to 31 December 2018.
The Placement is within CLW's 15% placement capacity, pursuant to Listing Rule 7.1.
Security Purchase Plan
Eligible securityholders in Australia and New Zealand will be invited to subscribe for up to $15,000 of new securities, free of brokerage and transaction costs, via a SPP. The new securities will be offered at the same price as the Placement of $4.04 per security. The SPP will be capped at $20 million and will not be underwritten. New securities issued under the SPP will rank equally with existing CLW securities and will be entitled to the full distribution for the three months to 31 December 2018.
Further information on the SPP will be lodged with the ASX and sent to eligible securityholders on Wednesday, 24 October 2018.
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