Charter Hall Long WALE REIT Resumed Trading On Completion Of $60 Million Placement

  • Oct 18, 2018 AEDT
  • Team Kalkine
Charter Hall Long WALE REIT Resumed Trading On Completion Of $60 Million Placement

Charter Hall Long WALE REIT (ASX: CLW) resumed trading on Australian Securities Exchange after releasing $60 million Placement outcome. At the time of writing, it has gone up 1.238% or $0.050 to stand at $4.090 (18 October 2018; 12:19 PM AEST).

In today’s announcement to ASX, Charter Hall WALE Limited announced the successful completion of $60 million placement via the issue of approximately 14.9 million new securities to institutional investors at an issue price of $4.04 per security.

The offer was fully underwritten and was issued at a discounted price, representing 2.9% discount to 5-day weighted average price of $4.16 on Tuesday. UBS AG, Australia Branch has acted as an underwriter to the Placement.  

It has been informed that proceeds from Placement will be utilized to partly fund the acquisition of $117.8 million. These new real estate assets to CLW’s stable comprises of industrial asset in Sydney, National Archives, and A-grade office asset in Perth, Optima Centre. Although on settlement of transaction CLW will clutch 100% stakes in National Archives for $54.1 million, it will just acquire 50% interest in Optima Centre at the purchase consideration of $62.6 million.

Both the properties are fully occupied representing a combined Weighted Average Lease Expiry (WALE) of 15.3 years and an initial yield of 6.9%. On the acquisition of these two new properties, CLW’s portfolio will reach to total 85 fully occupied properties worth $1,625 million and WALE 11.5 years.

Meanwhile, the new securities issued in the settlement of Placement offer will be allotted on 22 October 2018 to start trading on ASX from 23 October 2018. The REIT confirmed that the holders of these news securities will be entitled to receive full distribution for second quarter of FY19, i.e. three months ending 31 December 2018.

The REIT further put forwards it plan to raise up to $20 million through non-underwritten Security Purchase Plan (SPP). It stated that under SPP eligible Australia and New Zealand-based securityholders will be invited to subscribe for up to $15000 of new securities at the issue price of $4.04 security. This offer which will commence on 24 October 2018 will remain open for subscription till 14 November 2018.

Further, it has been clearly stated that new securities issued under Placement and SPP will rank equally with the existing securities of Charter Hall Long WALE REIT.

Charter Hall Long WALE REIT is an ASX listed real estate company that invests in Australasian real estate assets. Based in Sydney, Australia, the REIT owns and operates a diversified portfolio that includes office buildings, industrial and retail properties mainly leased to government and corporate tenants on long term leases.

Currently, CLW is trading upwards at $4.090. The stock has seen a performance change of -3.25% over the past one year while in the last 6-month performance it has witnessed a slight improvement of +1.76%. CLW is currently trading at a PE of 10.720 x with market capitalization of $938.49 million.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK