Charter Hall Long WALE REIT (ASX:CLW) steers 1.68bn take-over deal

Charter Hall Long WALE (ASX:CLW) and a Charter Hall managed trust on behalf of Hostplus have entered into a $1.68 billion deal to buy ALE Property (ASX:LEP).

The real estate investment company is undertaking the transaction alongside its existing capital partner Hostplus Both companies will own 50 per cent of ALE’s assets via schemes of arrangement.

Under the transaction, ALE security holders will receive $5.68 per ALE security comprising $3.67 cash and 0.41 Charter Hall securities per ALE security.

CLW Fund Manager Avi Anger says, “We believe the transaction is attractive and designed to deliver significant benefits to both LEP and CLW Securityholders.”

“The transaction is consistent with CLW’s strategy to invest in high quality real estate assets that are predominantly leased to corporate and government tenants on long term leases. We are pleased to be able to continue our partnership with Hostplus, a leading Australian Superannuation Fund, in investing in high quality pubs and liquor retail outlets leased to Endeavour Group.”

CLW has also acquired two industrial properties in Sydney and Brisbane for approximately $67 million.

Shares in Charter Hall Long WALE REIT (ASX:CLW) are trading 4 per cent lower at $5.08 while ALE Property Group (ASX:LEP) is trading 20.4 per cent higher at $5.66.

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