Charter Hall to expand into agriculture

Charter Hall Long WALE REIT (ASX: CLW) have announced the expansion of their industrial portfolio into chicken farms. The portfolio of 27 agri-logistic assets were acquired for $207M and includes hatcheries, feed mills and breeder farms. This acquisition will be partially funded via an $125M equity raising.

The first acquisition into the agriculture space is headlined by attractive metrics including a triple net leasing and a long WALE of 15.8 years. It also marks improved diversification into the portfolio and boosts the proportion of the portfolio to ASX listed food and liquor tenants, being currently leased to Australia’s largest poultry producer, Inghams Group Ltd. The lease is also guaranteed by Inghams Group Limited.

Charter Hall have also upgraded their guidance by 1.3% to 26.8-26.9 cpu on accounts of an improved portfolio following the acquisition.