Charter Hall Long WALE REIT is buying a property in Brisbane, Australia, and increasing its stake in a property portfolio to increase its exposure to long-leased hospitality and retail liquor assets.
In Brisbane, the real estate investment trust agreed to acquire Club Hotel, wherein a First Choice Liquor outlet is located, for A$22.0 million at a 5.7% yield. The tenant still has a remaining lease term of 14.4 years.
For the stake deal, Charter Hall Long WALE REIT is paying A$20.9 million for the interest valued at A$37.7 million to its parent, Charter Hall Group. The agreement takes its stake in the A$769 million Long WALE Investment Partnership portfolio to 49.9% from 45.0%. The portfolio has a weighted average lease expiry of 16.3 years, as at June 30, and 80% of the properties are located on eastern seaboard states in Australia.
The company has earmarked A$42.9 million, plus costs, from the A$135 million it gained from the August sale of an office building in Adelaide to fund the transactions.
In addition, the REIT reconfirmed its operating EPS guidance range for the 2019 fiscal year of 26.4 Australian cents to 26.6 cents.