By Vanessa Cavasinni, editor Australian Hotelier
Charter Hall Long WALE REIT (ASX:CLW) has acquired three ALH hotels and will lease them back to the pub group.
The Long WALE Investment Partnership purchased the Ship Inn Hotel in Busselton, Western Australia, Brunswick Hotel in Brisbane and the Old Sydney Hotel in Maryborough, Queensland for a total of $23.2 million. The acquisition reflects a 6.26 per cent yield.
ALH will enter into new 15-year leases with LWIP for the three hotels.
CLW fund manager Avi Anger was pleased with the transaction, citing the strong trade from all three properties.
“We are very pleased to be able to continue to grow our relationship with the ALH Group via the acquisition of these three high quality properties. All three hotels are strongly performing, are on new 15-year, triple-net leases and include either BWS or Dan Murphys outlets at each of the properties. This transaction extends CLW’s WALE and highlights our ability to continue to secure high quality properties, leased to quality tenants with strong covenants.”
CLW also had more than three-quarters if their portfolio independently valued this month. Including this new three-pub acquisition, CLW has announced that the REIT’s portfolio will eb valued at $1.37 billon, with a weighted average capitalisation rate of 6.2 per cent.