Charter Hall Group will lead a consortium in the purchase of a $603-million portfolio of properties from Woolworths subsidiary ALH Holdings, several outlets are reporting. Charter Hall will partner with superannuation fund Hostplus in the venture, which will see the portfolio leased back to ALH Group.
The initial 20-year lease will have a yield of 6.8 per cent.
The new partnership will be known as the Long Wale Investment Partnership and will commit equity of $302 million. The outstanding $340 million will come from a non-recourse debt facility from a syndicate of two Australian banks.
The portfolio covers assets across Australia, including the Croxton Park Hotel and Manhattan Hotel in Victoria, the Villa Noosa Hotel and Parkwood Tavern in Queensland, the Hyde Park Hotel in Western Australia and the Norwood Hotel in South Australia.