charter hall logo on frosted glass office window
Image – CDI Group.
  • Institutional component completed, about $169M raised
  • The remaining $81M desired to be generated through retail offer
  • Retail offer to start next week

Charter Hall Long WALE REIT (ASX: CLW) entered a trading halt yesterday ahead of a number of major announcements.

The company first announced shortly after the trading halt that it made significant investments into government-occupied properties.

Some $390 million in buildings across the ACT, NSW, and Victoria raised the company’s exposure to government tenants from 16% to 21%, the move is partially funded by a $250 million raise.

The raise

Separate from the Charter Hall Group (ASX: CHC) issuance of $250 million in bonds, the CLW raise is “a fully underwritten 1-for-10.68 accelerated non-renounceable entitlement offer to raise approximately $250 million.”

Only announced yesterday, the institutional portion of the entitlement offer is now complete, CLW successfully raised approximately $169 million, ” including Charter Hall Group’s (CHC) full entitlement of approximately $29 million.”

The retail portion will open on Monday next week, the company expects it will successfully bring in the remaining desired $81 million.

New securities issued under the Entitlement Offer will be issued at a fixed price of $4.65 per security (Issue Price) and rank equally with existing CLW securities from the date of issue including full entitlement to the distribution for the three months to 30 June 2021.

Charter Hall Long WALE REIT

Charter Hall said the raise was “well supported”, about 93% of eligible institutional security holders were said to have taken up the opportunity, settlement is expected on Thursday next week, the allotment and normal trading by the end of next week.

The retail offer will open Monday 24 May, closing 2 June.

The company is expected to resume trading on the ASX from market open today.

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