Charter Hall Long WALE REIT October 2018 Acquisition and Equity Raising

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 to acquire a 100% interest in an industrial asset and a 50% interest in an A-grade office asset for a total consideration of $117.8 million (Acquisitions)
• the REIT will undertake a fully underwritten $60 million institutional placement (Placement) at an issue price of $4.04 per security (Issue Price) to partially fund the Acquisitions and associated transaction costs
• the REIT is also undertaking a non-underwritten Security Purchase Plan (SPP) to eligible securityholders in Australia and New Zealand to raise up to $20 million
• including the impact of the Acquisitions and Placement and barring any unforeseen events and no material change in market conditions, CLW is guiding towards the upper end of its previously announced range for FY19 Operating EPS of between 26.4 – 26.6 cents per security

Acquisitions

The REIT has entered into an agreement for the following acquisitions:

• 100% of National Archives, Sydney, for $54.1 million, representing a yield of 6.6%. The property is leased to the Commonwealth of Australia with a lease term of 20 years remaining at the time of settlement; and
• 50% of Optima Centre, Perth for $62.6 million, representing a yield of 7.1%. The property consists of two A-grade office buildings situated in close proximity to the Perth CBD and major transport links. The major tenant of the property is the Government of Western Australia with a lease term remaining of 13.7 years at the time of settlement.

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:

• Fully occupied properties, with a combined WALE of 15.3 years;
• Strong tenant covenants, with 89% of income derived from government tenants; and
• 3.3% average annual fixed rental reviews.

Portfolio Impact

Placement

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:

• 2.9% discount to the 5 day VWAP of $4.16 on 16 October 2018
• 6.6% FY19 Operating EPS yield (at the upper end of CLW's guidance range)

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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