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.