Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — Merger or Acquisition (December 2017)
26 slides from Charter Hall Long Wale Reit's merger presentation, Dec 4, 2017
Slide 1: Acquisition and Entitlement Offer Presentation
For personal use only Virgin Australia Head Office, Brisbane, Queensland 4 December 2017 Charter Hall Long WALE REIT Acquisition and Entitlement Offer Presentation
Slide 2: Disclaimer
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Disclaimer Important Notice For personal use only This presentation ("Presentation") has been prepared by and is the sole responsibility of Charter Hall WALE Limited (ABN 20 610 772 202, Aus
Slide 3: Table of contents
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Table of contents For personal use only 1 Transaction overview 4 Appendix 2 Transaction rationale 5 Pro forma balance sheet 18 3 Market update 6 Key risks 19 4 Virgin Australia Head Office 7
Slide 4: Transaction overview
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Transaction overview Acquisition and Entitlement Offer For personal use only • Charter Hall WALE Limited ("Responsible Entity"), as responsible entity of Charter Hall Long WALE REIT (the "RE
Slide 5: Transaction rationale
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Transaction rationale Improves portfolio diversification, eastern seaboard exposure and increases office exposure For personal use only 1 Long WALE asset fully leased to a high quality ASX-l
Slide 6: Market update – December valuations
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Market update – December valuations December 2017 property valuations increasing by $19.6 million or 1.4% over June 2017 values For personal use only 46 of the REIT's 80 properties (c.39% of
Slide 7: Virgin Australia Head Office
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Virgin Australia Head Office A three building, high quality A-Grade asset underpinned by a long WALE and strong tenant covenant For personal use only Property overview Virgin Australia Head
Slide 8: Virgin Australia Head Office (continued)
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Virgin Australia Head Office (continued) A three building, high quality A-Grade asset underpinned by a long WALE and strong tenant covenant For personal use only Virgin HQ 8
Slide 9: Virgin Australia Head Office (continued)
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Virgin Australia Head Office (continued) A three building, high quality A-Grade asset underpinned by a long WALE and strong tenant covenant For personal use only Building Alpha L2 1,621 sqm
Slide 10: Portfolio impact
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Portfolio impact Virgin Australia Head Office increases the REIT's office exposure and further weights the portfolio to eastern states For personal use only Virgin Australia Dec-17 Dec-171 H
Slide 11: Portfolio impact (continued)
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Portfolio impact (continued) The Acquisition further improves CLW's tenant sector diversification1 For personal use only Major tenants 36% Food & liqour 33% 20% Government 18% 17% Hospitalit
Slide 12: Portfolio impact (continued)
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Portfolio impact (continued) No major lease expiries until FY21 For personal use only • The REIT has a portfolio WALE of 11.2 years1 Portfolio WALE • Virgin Australia Head Office further div
Slide 13: Entitlement Offer
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Entitlement Offer Overview For personal use only The REIT will undertake a fully underwritten Entitlement Offer of approximately $94.1 million to fully fund the Acquisition including transac
Slide 14: Entitlement Offer (continued)
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Entitlement Offer (continued) For personal use only • 1 for 9.25 accelerated non-renounceable entitlement offer to raise approximately $94.1 million – Record date is 6 December 2017 at 7:00p
Slide 15: Entitlement Offer (continued) – Timetable
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Entitlement Offer (continued) Timetable For personal use only Event Date 2017 Trading halt and announcement of the Transaction Monday, 4 December Institutional Entitlement Offer Bookbuild Mo
Slide 16: Conclusion
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Conclusion For personal use only Long WALE asset fully leased to a high quality ASX-listed tenant Improves the sector, geographic and tenant diversification of the REIT's portfolio Sta
Slide 17: Appendix
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Appendix For personal use only 17 Virgin Australia Head Office, Brisbane, Queensland
Slide 18: Pro forma balance sheet
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Pro forma balance sheet For personal use only Dec-17 Jun-17 $m Jun-171 revaluations2 Entitlement Offer Acquisition3 (pro forma) Cash 2.9 92.1 (92.1) 2.9 Investment properties 788.9 8.0 90.8
Slide 19: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Summary of key risks For personal use only Rental Income Property valuation risk (cont.) Distributions made by the REIT are largely dependent on the rents received from tenants across the Pr
Slide 20: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Summary of key risks For personal use only Management performance Conflicts (cont.) The REIT will be reliant on the expertise, experience, and strategies of its executive directors and This
Slide 21: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Summary of key risks For personal use only Gearing Compliance The level of gearing exposes the REIT to any changes in interest rates and increases the REIT's The REIT is a managed investment
Slide 22: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Summary of key risks For personal use only Environmental Pre-emptive rights and other risks associated with joint-ownership agreements (cont.) As with any property, there is a risk that one
Slide 23: Summary of key risks
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Summary of key risks For personal use only There are risks associated with any stock market investment. These include, but are not limited to: Macro-economic (cont.) • Dilution risk – as the
Slide 24: Foreign selling restrictions
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Foreign selling restrictions For personal use only This document does not constitute an offer of Securities in any jurisdiction in which it would be unlawful. In particular, this document ma
Slide 25: Glossary
Charter Hall | Charter Hall Long WALE REIT | Acquisition and Entitlement Offer Presentation | 4 December 2017 Glossary For personal use only Defined term Meaning Balance Sheet Gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets
Slide 26: For personal use only
Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 12, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 4000 T: +61 7 3228 2000 Perth Level 5, St Georges Square
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