Charter Hall Long WALE buy Up Inghams

Charter Hall Long WALE Reit has agreed to acquire 27 Agri-logistics assets from Inghams for $200M. The assets which include Hatcheries, Breeder Farms and Feedmill farms are predominantly rural assets spread across the country, covering 1,690 ha.

Inghams Enterprises will lease back the properties under a triple net basis for 16 years based plus 5 x 10 year options, on a capitalisation rate of 7.35%.

The acquisition will be partly funded by a a fully underwritten accelerated non-renounceable entitlement offer to raise approximately $125 million.

The acquisition comes 4 years after Charter Hall acquired 6 assets from Inghams for its Core Logistics Partnership. Direct Industrial Fund and Core Plus Industrial Fund for $171M in 2014. The deal represented an initial yield of 7.8%.

Refer to Investor Presentation

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