Charter Hall fund buys, sells assets
Charter Hall has struck some deals for its Long WALE REIT (CLW), an update of which it provided to the market today.
In Melbourne, the group is paying $62 million – an 8.1 per cent passing yield – for the Australian Border Force dog training facility at Bulla.
The seller is another trust – the Social Infrastructure REIT – which paid the federal government $58.3m in 2018.
The lease with the Department of Home Affairs has 11.4 years left to run without extensions. The rent reviews are also fixed at four per cent.
Meanwhile, CLW is paying $44 million for a 49.9 per cent interest in the leasehold of the 450-metre long, Brutalist Campbell Park complex, in Canberra.
Occupied by the Department of Defence for two more years, the result reflects a high 14.9pc yield.
Also in the ACT, CLW has upped its interest in the unique Geosciences Australia headquarters the manager bought in 2022 at Symonston, from 25pc to 33.3pc.
The incremental increase cost it $28.7m, an 8.4pc passing yield.
The government has seven years left to run on a lease.
In Sydney, CLW will seize the 49.9pc it doesn’t control of the Westpac building in Kogorah.
“The incremental investment was acquired for $94.6m reflecting a passing yield of 7.3pc,” a statement said.
Finally, the fund has offloaded a Brisbane pub – the Brunswick Hotel – as we reported last week.
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