A new fund managed by ASX-listed Charter Hall Group has bought a 49% stake in a NZ$534m portfolio of BP fuel and convenience retail properties in New Zealand, representing a 6.25% initial yield.
The portfolio comprises 70 triple net leased properties, with 72% of the properties located in NZ’s top three cities and Auckland representing 51% of the portfolio value. The portfolio has a 20-year WALE at acquisition, with initial lease terms ranging from 18 to 22 years for properties in the portfolio.
Charter Hall acquired the portfolio interest through a sale-leaseback deal with BP, with Charter Hall Long WALE REIT and Charter Hall Retail REIT co-owning the NZD$262m.
“This off market transaction further extends our relationship with bp, builds upon the success of our Australian Partnership and demonstrates our conviction in NNN leased Long WALE convenience retail,” said Charter Hall managing director and group CEO David Harrison.
Charter Hall Group shares closed 0.08% higher to A$12.42 on Thursday. Charter Hall Retail REIT shares finished trading up 0.30% at A$3.35, while Charter Hall Long WALE REIT shares closed flat.
| Index | Change | Value at close |
|---|---|---|
| S&P/ASX 200 A-REIT | -0.17% | 1,278.00 |
| S&P/ASX 200 | +0.51% | 5,908.50 |
| FTSE ST REITS | -0.16% | 844.40 |
| STI | -0.29% | 2,492.09 |
| Tokyo Stock Exchange REIT | +0.03% | 1,708.11 |
| Nikkei 225 | +0.88% | 23,235.47 |
| Hang Seng REIT | +0.32 | 5,652.92 |
| Hang Seng | -0.64% | 24,313.54 |
Singapore: Ascendas REIT prices S$300m green perpetual securities
Ascendas REIT has priced its S$300m green subordinated perpetual securities, marking the first real estate Green perpetual securities in Asia.
The securities will have an initial rate of distribution of 3%, as part of the REIT’s S$7bn Euro Medium Term Securities Programme.
Ascendas said the orderbook reached more than S$725m across 57 accounts, with OCBC Bank acting as sole lead manager, bookrunner and green finance adviser.
“This is the second Green financing instrument we have issued this year that is backed by 17 BCA Green Mark Platinum and GoldPlus properties in the Ascendas REIT portfolio,” said Mr William Tay, CEO and executive director of the REIT’s manager. “We will be incorporating more ‘green’ initiatives into our core business strategy, for example in the areas of financing, property development and asset improvements.”
Ascendas REIT made the announcement after the markets had closed.