Coles and Charter Hall extend relationship with Lease extension of Regional Distribution Centre in Perth

Charter Hall Long WALE REIT (“CLW”) is pleased to announce that it has agreed a lease extension with Coles Group (“Coles”) at its Perth Airport distribution centre at 136 Horrie Miller Drive, Perth Airport, WA (Property).

CLW currently owns a 49.9% interest in the Property which formed part of the CLW portfolio at IPO in November 2016. The remaining 50.1% of the Property is owned by Charter Hall Direct managed funds DIF2 and DIF3. The Property was purpose built for Coles in 2008 and is an 81,647 sqm distribution centre comprising ambient warehouse, temperature controlled and freezer facilities and on-site administration buildings. The Property is 100% leased to Coles and is used as its regional distribution centre for Western Australia.

A lease extension has been agreed with Coles which increases the remaining lease term to 15 years, effective from 1 January 2020. The lease expiry date has now been revised from 2028 to 31 December 2034.

The lease extension results in the CLW Portfolio WALE increasing from 13.0 years to 13.3 years¹.

Avi Anger, Fund manager of CLW commented:

“This lease extension demonstrates the strong relationships which Charter Hall Group has with its tenant customers across its platform and the benefits this brings to CLW. It is great to be able to extend this lease with a high quality tenant, Coles Group, which results in an increase in the CLW portfolio WALE to 13.3 years.”

An independent valuation of the Property will be undertaken as at 31 December 2019.

^{1 CLW portfolio WALE as at 30 June 2019, pro-forma adjusted for acquisitions subsequently announced on 16 August 2019 and 4 November 2019.}

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