Charter Hall Long WALE REIT is pleased to announce the acquisition of a modern distribution centre located in Larapinta, Queensland for a purchase price of $21 million on an initial yield of 4.77%.
The property is 100% leased to Toyota with a lease term remaining of 6.6 years and a five year renewal option.
The facility sits on a large 17,720m2 site and was purpose built for Toyota, comprising 7,094m2 of GLA across modern warehouse, ancillary office and showroom. It is located at 20 Radius Drive, Larapinta in the prime industrial precinct of Larapinta, 20 kilometres from the Brisbane CBD with excellent access to Brisbane’s major arterial road network. The property also benefits from low site coverage providing future redevelopment and value add opportunities.
The acquisition creates a new tenant customer relationship for CLW with a significant multi-national corporation and continues CLW’s focus on partnering with high quality corporate and government tenants.
The purchase will be funded by equity via a scrip for scrip transaction where CLW stapled securities will be issued to the vendor in exchange for units in the asset owning trust.
As part of the transaction, CLW will take on approximately $4 million of debt in the vendor trust which CLW will refinance on completion of the transaction. The transaction is expected to settle on or after 1 October, 2021.
The approximately $17 million of CLW securities will be issued at the lesser of
- $4.70 per security (which reflects the trading price of CLW securities at the time that the commercial terms were originally negotiated in March 2021); and
- the 5 day VWAP of CLW securities at the date of completion.
Following finalisation of due diligence and other matters, exchange of contracts occurred today. There are no impacts to the financial information contained in CLW’s announcement on 20 September 2021 in relation to the acquisition of 50% of ALE Property Group as a result of this transaction.