- CLW to acquire 50% interest in four government-occupied properties
- The REIT has also bought 100% of an Ampol-anchored retail centre
- Financed through fully underwritten capital raise of $250M, rest in debt
Charter Hall Long WALE real estate investment trust (ASX: CLW) announced today that it has entered into agreements to acquire 50% interests in the following four government-occupied properties:
- the Services Australia Building in Tuggeranong, ACT for $153 million;
- the ATO Building in Box Hill, Vic for $115 million;
- the Red Cross Building in Alexandria, NSW for $79.5 million; and
- the ATO Building in Albury, NSW for $42.5 million
This will raise CLW’s exposure to government tenants from 16% to 21%.
In addition, CLW also announced it has settled the acquisition of a 100% interest in the Ampol-anchored Redbank Plains convenience retail centre, QLD for $25.4 million.
To partially fund the deal, the group plans to raise $250 million through a fully underwritten 1-for-10.68 accelerated non-renounceable entitlement offer, at $4.65 per security.
CLW’s largest shareholder, Charter Hall Group, will commit to $29 million in the equity-raising.
The remaining will financed from existing debt facilities, to the tune of $197 million.
Shares in CLW were put in a trading halt at $4.81.