Myer department store on Bourke Street in central Melbourne.
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  • Charter Hall Long WALE REIT (CLW) enters into agreements to acquire interests in three properties for approximately $267 million
  • CLW has acquired a 33.3 per cent tenants in common title interest in the Myer Bourke Street Mall in the Melbourne CBD for $135.2 million, joining Abacus Property Group who secured the same deal
  • The company also fully acquired a distribution centre leased to Simon National Carriers in Carole Park, Brisbane for $83.1 million and a Bunnings in Perth for $49 million
  • After the acquisitions, CLW portfolio will rise to 367 properties with a combined value of $5.547 billion
  • Charter Hall Long WALE REIT has risen 0.84 per cent on the market and shares are trading at $4.79 at 12:11 pm AEST

Charter Hall Long WALE REIT (CLW) has entered into agreements to acquire interests in three properties for approximately $267 million.

CLW has acquired a 33.3 per cent tenants in common title interest in the Myer Bourke Street Mall in the Melbourne CBD for $135.2 million, joining Abacus Property Group who secured the same deal.

The company also fully acquired a distribution centre leased to Simon National Carriers in Carole Park, Brisbane for $83.1 million.

A Bunnings property in Baldivis, Perth was also fully acquired for $49 million, with the three acquisitions expected to settle this month.

CLW fund manager Avi Anger said the acquisitions are strategically located, high quality industrial and logistics and long weighted average lease expiry (WALE) retail properties that are leased to national tenants.

“This includes the Myer Bourke Street Mall property in Melbourne, which together with CLW’s existing investment in the David Jones Castlereagh Street store in Sydney, represent two of Australia’s most iconic CBD buildings,” he said.

“The acquisitions feature an attractive passing yield of 5.1 per cent, long WALE of 11.2 years and favourable rent review structures and demonstrate our focus on securing long leased assets with strong underlying property fundamentals.”

After the acquisitions, CLW portfolio will rise to 467 properties with a combined value of $5.547 billion, with a 97.8 per cent occupancy level, 13.2 years WALE and an unaudited pro-forma net tangible assets per security of around $5.21.

The three acquisitions will be funded from the REIT’s existing debt capacity, including funds from the recently completed $200 million issuances of 8.5-year Australian dollar medium-term notes.

CLW said its pro-forma balance sheet and look-through gearing including the acquisitions is expected to be approximately 31.9 per cent and 39.9 per cent respectively.

On the back of the acquisitions, the company reaffirmed its FY21 operating earnings-per-share of 29.2 cents per share, a 3.2 per cent growth on FY20.

“The acquisitions are expected to be materially accretive to prior FY22 Operating EPS growth guidance,” Mr Anger said.

“As a result, we have upgraded FY22 Operating EPS guidance to growth of no less than 4.5 per cent over forecast FY21 OEPS continuing our track record of delivering strong earnings and distribution growth for our investors.”

Charter Hall Long WALE REIT has risen 0.84 per cent on the market and shares are trading at $4.79 at 12:11 pm AEST.

CLW by the numbers
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