Charter Hall Long WALE REIT agreed to buy the National Archives property in Sydney and a 50% stake in BlackRock Inc.'s Optima Centre office campus in Perth, Australia, under deals totaling A$117.8 million.
The real estate investment trust struck a A$54.1 million deal that reflects a 6.6% yield for the Sydney asset and a A$62.6 million deal that represents a 7.1% yield for the interest in the roughly A$130 million Perth building.
Both targeted fully occupied properties are leased to government agencies, with the Commonwealth of Australia occupying the National Archives on a term-lease agreement with 20 years remaining and the Government of Western Australia renting a major part of the Optima Centre under a deal that will expire in 13.7 years.
Charter Hall Long WALE is planning to conduct a fully underwritten A$60 million institutional placement at an issue price of A$4.04 per security to partially finance the proposed acquisitions.
The REIT also intends to raise up to A$20 million through a non-underwritten security purchase plan that will be offered to eligible security holders in Australia and New Zealand, according to a news release.
With the proposed transactions and placement, the trust said it is drawing closer to the upper end of its fiscal-year 2019 operating EPS target of between 26.4 Australian cents per security and 26.6 cents per security, Charter Hall Long WALE added.