Charter Hall has made $1.25 billion acquisitions which will jointly owned by the group (30%) and its funds: the Charter Hall Long WALE REIT (50%) and the Charter Hall Retail REIT (30%).
The acquisitions would include a $840 million investment in a new managed partnership that acquired a 49% interest in a $1.7 billion portfolio comprising 225 convenience retail properties leased to BP Australia and the $399 million industrial facility, in a sale and leaseback from Arnott’s, located within Sydney’s western suburbs.
The company’s equity commitment for its 205 interest was estimated to stand at approximately of $90 million, which would be funded through existing investment capacity. To this end, Charter Hall announced the undertaking of an underwritten $350 million equity raising which would consist of both a placement and an accelerated non-renounceable entitlement offer (ANREO).
“Our success in partnering with Global multi-national and Australian-based corporates in sale and leaseback activities continues to benefit our tenant customers while providing opportunities for our diverse range of investors and securityholders,” Charter Hall’s Managing Director and Group CEO, David Harrison said.
“The creation of this Partnership continues Charter Hall’s growth of new partnerships and funds, whilst further extending the Group’s long WALE investment strategy.”