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