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.
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