Australian telco Telstra Corp has sold a 49% stake in a newly established property trust to a consortium led by Charter Hall Long Wale REIT for A$700 million ($474 million).
Property group Charter Hall Group announced an investment in a new managed Partnership to acquire a 49% interest in a portfolio of 37 Telco Exchange properties leased to Telstra Corporation Limited (Telstra) with a WALE of 21 years, with staggered lease expiries from 10 to 25 years.
The Charter Hall managed Partnership will be owned 50% by Charter Hall Long WALE REIT (ASX:CLW), 28.2% by a wholesale capital partner and 21.8% by Charter Hall Group.
”Charter Hall’s equity commitment for its 21.8% interest is approximately $76 million, which will be funded by available investment capacity. As part of the creation of this fund, Charter Hall Long WALE REIT is undertaking an equity raising today which includes an accelerated non-renounceable entitlement offer. Charter Hall Group intends to subscribe for its entitlements as part of that offer,” said in a statement.
“The creation of this Partnership continues Charter Hall’s successful growth of new partnerships and funds, whilst further extending the Group’s long WALE investment strategy. It also continues the strong relationship we have with Telstra, one of our significant tenant-customers and demonstrates Charter Hall’s leading position in the sale and leaseback market in Australia,” said David Harrison, Charter Hall’s Managing Director and Group CEO.