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Charter Hall to list A$1B office-focused REIT in October

Charter HallGroup released the product disclosure statement and timetable for aA$1.12 billion REITthat will primarily targethigh-quality office properties.

Long WALE REIT, which will join the company's existingfamily of funds, will invest in Australasian assets that are leased togovernment and corporate tenants in the long term.

The REIT's initial portfolio will consist of 66 diversifiedproperties, located in six Australian states, independently valued at A$1.25billion. The properties have a 6.4% weighted average cap rate, 100% occupancyand a 12.5-year weighted average lease term. The REIT is projected to seeannual earnings and distribution yields of 5.3% per security for the 2017financial year.

Avi Anger will be the fund manager of the REIT, with BenEllis and Kerri Leech serving as the deputy fund manager and head of finance,respectively. Peeyush Gupta will be the REIT's independent chairman, with GlennFraser and Ceinwen Kirk-Lennox serving as independent nonexecutive directors.The REIT's board will also include Charter Hall CEO and Managing Director DavidHarrison and Charter Hall Head of Office Adrian Taylor as executive directors.

Charter Hall tapped J.P. Morgan Australia Ltd. and UBS AGAustralia Branch as joint lead managers, while King & Wood Mallesons wasappointed as legal adviser.

According to a timetable, the IPO for the REIT is expectedto open Oct. 18 for institutional investors. The REIT will start trading on theASX on a conditional and deferred settlement basis on Oct. 19, and itssecurities will be issued and allotted by Oct. 27. Long Wale REIT will commencetrading on the Australian bourse on a normal settlement basis Oct. 31.

Meanwhile, Charter Hall closed on its A$140.5 millionacquisition of ahalf-stake in Coles' headquarters at 800 Toorak Road, East Hawthorn in Melbournefrom Investa OfficeFund. The property is likely to be added to the REIT's portfolio, The Sydney Morning Herald reported Sept.28.

As of Sept. 27, US$1was equivalent to A$1.31.