Australian-listed Charter Hall Long WALE REIT has agreed to buy a portfolio of 27 agri-logistics properties across Australia including hatcheries, feedmills and breeder farms for A$207m (US$147m).
The portfolio is fully let to poultry business Inghams on a triple-net lease structure with 15.8 years remaining, according to a Charter Hall statement.
The assets are strategic to the tenant and represent the majority of its long-term supply chain infrastructure for raw materials.
The portfolio has locations in every state in the country, with 62% of the properties located on the Eastern seaboard.
The deal will boost the REIT’s portfolio to 112 properties worth $1.86bn in total.
Charter Hall plans to raise $125m from investors to support the acquisition.
The transaction and the share offer will move balance sheet gearing to 31.9%, still within the company’s target leverage range of 25% to 35%.
Charter Hall Long WALE REIT is listed on the ASX and invests in Australasian property assets predominantly let to corporate and government tenants on long term leases.
Charter Hall Group has more than $26.4bn of office, retail, industrial and social infrastructure real estate under management.