Charter Hall spends $319.4m for Long WALE REIT

Charter Hall is paying Telstra $281.5 million for 76-78 Pitt Street, Sydney.

Charter Hall has spent $309.6 million on two east coast investments for its Long WALE REIT (CLW).

The trust will also pay $9.8m for a 49.5 per cent interest in Darwin’s Parap Tavern, which the manager acquired in September for the Long WALE Investment Partnership (LWIP).

The fund has allocated another $339m for future capacity of as-yet-unannounced deals.

Today Charter Hall launched a $250m institutional placement for the acquisitions.

Spree increases CLW exposure to Sydney, Triple Net leases

Of the $309.6m spent on the two new properties – 90pc is attributed to 76-78 Pitt Street, which was offered with a 10 year leaseback to Telstra.

The 15 storey exchange on 1507 sqm a block from Charter Hall’s 1 Martin Place headquarters is trading on a 4.53pc initial yield.

In Brisbane’s Caboolture, CLW is spending $28.1m on a Bunnings outlet due for completion in 12 months (story continues below).

The hardware store is committed until 2033.

That deal reflects a 4.75pc yield.

The third property CLW is obtaining an interest in – Parap Tavern – occupies 5540 sqm two kilometres north of Darwin which can’t be replaced until a 15 year lease to Endeavour expires.

LWIP purchased it on a 5.63pc return.

The Pitt St and Parap assets – marketed respectfully by Knight Frank and HTL Property – increase the trust’s portion of Triple Net leased investments.

The Caboolture deal was brokered by CBRE.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco