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CHARTER HALL LONG WALE REIT — Proxy Solicitation & Information Statement 2018
Jul 9, 2018
64662_rns_2018-07-09_b3d5ddfb-5f25-4165-a014-50dbe0cb67fa.pdf
Proxy Solicitation & Information Statement
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ASX Release
Charter Hall Long WALE REIT issues Notice of Meeting and Explanatory memorandum
Charter Hall WALE Limited ACN 610 772 202 AFSL 486721 Responsible Entity of Charter Hall Long WALE REIT Level 20, No.1 Martin Place Sydney NSW 2000 GPO Box 2704 Sydney NSW 2001 T +61 2 8651 9000 F +61 2 9221 4655 www.charterhall.com.au
10 July 2018
Charter Hall WALE Limited as responsibility entity of the Charter Hall Long WALE REIT (ASX: CLW ) today issued a Notice of Meeting and Explanatory Memorandum to CLW securityholders.
This relates to two resolutions which are currently being pursued by CLW, comprising the sale of a 50% interest in 12-26 Franklin Street, Adelaide ( ATO Building ) and secondly, a further simplification of the REIT’s stapled trust structure.
1. Sale of a 50% Interest in ATO Adelaide
When CLW listed in November 2016, the portfolio consisted of an interest in 66 properties including the ATO Building in Adelaide. This property alone represented approximately 21% of the REIT’s portfolio at IPO. With the maturity of the CLW portfolio and the recent market rent review completed, CLW has elected to accept an offer from an unlisted Charter Hall managed fund for the sale of a 50% interest in the property for $135 million. Following completion of the proposed sale, CLW’s remaining 50% interest in the property will represent approximately 10% of the CLW portfolio[1] .
The sale proceeds of $135 million are expected to be reinvested into a broader range of investments along the Eastern Seaboard markets of Australia.
The sale price is equal to CLW’s June 2018 independent valuation and is also a 2.5% premium to the valuation of the property at the time of the CLW IPO in November 2016. In addition, a selling agent was not appointed for this sale which has resulted in a saving to CLW of agent’s fees and marketing costs of 1% or more of the sale price.
CLW securityholder approval is required as it is a related party transaction with the Charter Hall Direct Office Fund. The ASX requires that securityholders vote on related party transactions over a prescribed value. Charter Hall will not vote its holding in CLW in relation to this resolution and has also agreed to waive its 1% divestment fee on the transaction.
2. CLW Further Simplification
The 2[nd] resolution outlined in the Notice of Meeting relates to a further simplification of the trust structure of the REIT.
At the time of the CLW IPO in November 2016, the REIT’s structure consisted of 7 trusts which were brought together from across the broader Charter Hall Group to form the listed CLW stapled trusts.
1 By income, as at 30 June 2018
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Following securityholder approval on 22[nd] September 2017, an initial simplification was completed whereby the number of trusts in the CLW stapled trust structure was reduced from seven trusts to three trusts.
Due to recent stamp duty legislation changes, a further simplification is now proposed, such that the REIT structure is further simplified to two stapled trusts. This further simplification will streamline reporting and administration costs which are expected to result in an annual saving of approximately $20,000 per annum for the REIT.
The Board of CLW encourage securityholders to read the Notice of Meeting and Explanatory Memorandum. There are further details in these documents regarding the proposed initiatives.
A meeting of securityholders will be held on Monday 6 August 2018 at 10am at the offices of Charter Hall Group to vote on these resolutions.
Securityholders should contact Charter Hall at the details included in the Notice of Meeting with any questions they may have.
About Charter Hall Long WALE REIT
Charter Hall Long WALE REIT is an Australian Real Estate Investment Trust (“REIT”) listed on the ASX (ASX: CLW) and invests in high quality Australasian real estate assets that are predominantly leased to corporate and government tenants on long term leases.
Charter Hall Long WALE REIT is managed by Charter Hall Group (ASX:CHC) one of Australia’s leading fully integrated property groups, with over 25 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $22.5 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and riskreturn profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.
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For investor enquiries, please contact
For media enquiries, please contact
Avi Anger Philip Cheetham Angus Booth Fund Manager Head of Listed Investor Relations Head of Communications and External Charter Hall Long WALE REIT Charter Hall Affairs T +61 2 8651 9111 T +61 2 8651 9214 Charter Hall [email protected] [email protected] T +61 2 8651 9223 [email protected]
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