Charter Hall along with the Charter Hall Long WALE REIT have sold their entire 10% holding in Waypoint REIT.
Each of Charter Hall and its Long Wale REIT held a 5% stake in the fuel station REIT and jointly sold their position for $203.2m ($101.6m each).
Charter Hall paid approx $207m for the position in February 2020 and received $5.7M in dividends for the half year in June 2020. Together with the proceeds of the sale, Charter Hall made a positive total return of $1.8m.
Charter Hall had hoped to take advantage of VIVA Energy's exit from their holding in the REIT and may have been aware of a potential internalisation proposal (announced later in May). The sale of the VIVA stake however caused a review event within the REITs debt facilities prompting a change to the terms of 2 of its facilities. Whilst the commercial outcome of the debt facilities were unchanged, the uncertainty may have affected the performance of the REIT during this time.
The VIVA Energy REIT proceeded with an internalisation proposal in May, also facilitating the change in its name to Waypoint REIT.
There is no record yet of whether the buyer(s) of the 10% stake has become a substantial unitholder.