Charter Long WALE acquires new Triple Net Assets

15 July 2020

Charter Hall Long WALE REIT announced the acquisition of two new facilities, sourced off market through existing tenant relationships.


The first asset is the Indooroopilly Hotel, leased to ALH Group, was acquired for $13.2 million reflecting a capitalisation rate of 5.50%. The hotel was acquired in CLW’s Long WALE Investment Partnership (LWIP) joint venture. Upon settlement of the Indooroopilly Hotel, ALH entered into a new 15 year, triple net lease at this property.


This Partnership now comprises a national portfolio of 60 properties which are leased to ALH on a triple net lease (NNN) basis with a portfolio weighted average lease expiry of 14.1 years as at 30 June 2020. 49 properties in the LWIP portfolio have either a Dan Murphys or BWS component to them.


CLW has also further extended its relationship with SUEZ by expanding its portfolio of triple net leased industrial properties leased to SUEZ. The Group acquired a waste transfer facility in North Ryde, Sydney for $15 million reflecting a capitalisation rate of 5.0%. The property was acquired from SUEZ on a sale and leaseback basis, with a new 20 year, triple net lease from settlement.


In addition, CLW recently completed a 2,100sqm warehouse expansion at the existing CLW SUEZ leased property in Welshpool, Perth for a cost of $2 million. Upon completion of construction, the lease term remaining of the new warehouse and the existing facility has been reset from 11.5 years to 15 years and the rent for this property has been increased to reflect the cost of the expansion. With these acquisitions, triple net leases now account for 46% of CLW’s net passing income.


Fund Manager of CLW, Avi Anger commented “an important attribute of CLW is the active asset management of the portfolio and the strong relationship we maintain with the tenants across our portfolio. We are pleased to extend our relationship with two important CLW tenants, ALH Group and SUEZ, as a result of these recent long WALE acquisitions and the SUEZ warehouse expansion.”