Charter Hall Long Wale REIT Acquisitions and Capital Raising

8 December 2017

Charter Hall Long WALE REIT (ASX:CLW) announced this week that; the REIT has undertaken independent revaluations of properties representing 39% of the portfolio’s value as at December 2017, with these revaluations indicating a $19.6 million uplift the REIT has entered into an agreement to acquire Virgin Australia’s Head Office in Brisbane for $90.8 million the REIT is conducting a $94.1 million fully underwritten accelerated non-renounceable entitlement offer to fund the Virgin Australia Head Office acquisition. Valuation Charter Hall completed valuations for 46 of the REIT’s 80 properties (c.39% of the portfolio by value) as at December 2017. The revaluations show an increase of $19.6 million, reflecting a 1.4% increase in portfolio value from June 2017 valuations. The portfolio’s weighted average capitalisation rate compressed by 7 bps to 6.1%. Acquisition The REIT has entered into an agreement to acquire a 100% interest in Virgin Australia’s head office at 56 Edmondstone Road, Bowen Hills for $90.8 million. The vendor was another of Charter Hall’s unlisted funds. The A-Grade asset comprises 12,427sqm of net lettable area across three low rise office buildings and is fully leased to Virgin Australia with an 8.4 year WALE. The acquisition price reflects a 6.9% initial passing yield and 6.8% capitalisation rate. A copy of the IM is available here Capital Raising The REIT successfully completed a fully underwritten entitlement offer to raise approximately $94.1 million to fund the acquisition and associated transaction costs. The Entitlement Offer was underwritten by UBS AG, Australia Branch. Eligible securityholders were offered 1 new security in the REIT for 9.25 existing securities at a fixed issue price of $4.15 per security. The Issue Price represents a: 1.6% discount to the 5 day VWAP of $4.22 on 1 December 2017 3.2% discount to the theoretical ex-rights price (TERP) of $4.29 Charter Hall Announcement & Presentation Charter Hall Long WALE REIT Successful Completion of Institutional Entitlement Offer #CharterHall