This article is from the Australian Property Journal archive
CHARTER Hall Long WALE REIT has made acquired the Indooroopilly Hotel and a North Ryde waste transfer facility, expanding its relationship with existing tenants and exposure to triple net leases.
The trust paid $13.2 million for the Indooroopilly Hotel in Brisbane’s west, with a new 15 year lease to ALH Group, reflecting a capitalisation rate of 5.50%.
The hotel was acquired in CLW’s Long WALE Investment Partnership joint venture that comprises a national portfolio of 60 properties leased to ALH on a triple net lease basis, with a portfolio weighted average lease expiry of 14.1 years. Forty-nine properties within the LWIP portfolio have either a Dan Murphy’s or BWS component to them.
The LWIP recently offloaded the Great Western Super Centre in Brisbane’s north west for $84.5 million.
CLW has also extended its relationship with waste management and water solutions company SUEZ, acquiring the waste transfer facility in a sale and leaseback agreement worth $15 million that represents a capitalisation rate of 5.0%.
SUEZ agreed to a 20 year triple net lease.
In addition, CLW recently completed a $2 million 2,100 sqm warehouse expansion at the SUEZ facility in Perth’s Welshpool. Upon completion, the lease term remaining of the new warehouse and the existing facility has been reset from 11.5 years to 15 years, the rent increased to reflect expansion costs.
The acquisitions mean properties with triple net leases now account for 46% of CLW’s net passing income.
“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,” fund manager of CLW, Avi Anger said.
Charter Hall has spent over $1 billion on industrial and logistics facilities across its funds management platform since June. This week, Charter Hall Prime Industrial Fund and a global institutional partnership managed by the group acquired a 30.6 hectare automotive logistics park in Sydney’s Minto from Qube for $207 million, while Charter Hall Direct Industrial Fund No.4 bought the Owens-Illinois Australia facility in Penrith for $88 million, as part of a portfolio sale and lease back deal.
