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Highlights:
- Charter Hall Long WALE has acquired 25% stake in Geoscience Australia property.
- For 25% stake in the property, the company has paid AU$90.9 million.
- The acquisition to be funded from sale proceeds of Hopper Crossing, Victoria.
Australian real estate investor, Charter Hall Long WALE REIT (ASX:CLW) on Wednesday (12 September 2022) shared that it has acquired a 25% stake in Geoscience Australia property, located in Canberra.
Shares of CLW were quoted at AU$4.03 apiece, up 0.25% at 11:07 AM AEDT. The share price has dropped 24.15% in the past six months. In a year, it has fallen by 17.32%, and on a year-to-date basis, it has tumbled by 17.32%.
Details of the acquisition
- According to ASX announcement, CLW had partnered with two Charter Hall-managed funds to buy Geosciences Australia. CLW has called the property a ‘unique social infrastructure asset’.
- 25% stake in the property has been bought for AU$90.9 million on a 7.4% initial yield. Reportedly, the WALE of the property is 9.6 years, with a 3% increase in fixed annual rent. Under the net lease structure of the property, the tenant is accountable for all property outgoings.
- According to ASX announcement, the property is situated at 101 Jerrabomberra Avenue, Symonston, ACT. It is around 7 kms from Canberra CBD. CLW said,
Moreover, the building has gained climate Active Carbon Neutral certification and incorporates a geothermal heat pump system. Since construction, substantial capital has been invested in upgrading ongoing tenancy, such as incorporating the site childcare centre and critical infrastructure.
About Geoscience Australia
Geoscience Australia is a commonwealth agency that acts as a technical adviser of the Australian government on the aspects of geoscience. Also, Geoscience Australia is a custodian of the geological and geographic data of Australia.
Considering the scientific nature of Geoscience Australia, the building includes a geochronology history, geochemistry laboratory, mass spectrometer facilities, mineral separation laboratory, and National earthquake Seismic Centre.
How would CLW fund the acquisition?
CLW said that the acquisition would be funded through the sale proceeds of Hoppers Crossing, Victoria. It is an industrial and logistics facility, which has been sold for AU$74 million. The sales settlement is expected in December 2022.
