Charter Hall Long WALE REIT and its manager, Charter Hall Group, are investing in a new A$700 million partnership that will take a 49% stake in a portfolio of 37 properties leased to Telstra Corp. Ltd.
The real estate investment trust will own 50% of the partnership, which will also be managed by Charter Hall. The latter will own 21.8% of the partnership, with an unnamed wholesale capital partner holding the remaining 28.2% stake, according to an Aug. 16 release.
The partnership will form a 49/51 property trust with Telstra to hold the targeted portfolio, the REIT noted in another same-day release that was distributed in targeted jurisdictions.
Through the partnership, the REIT plans to hold a 24.5% share of the portfolio for A$350 million. This will be partially finance by an approximate A$261 million equity raising exercise comprising an institutional placement of roughly A$130 million and a nonrenounceable entitlement offering of about A$131 million.