On Monday, it was announced that the industry super fund and fund manager have entered into a scheme implementation deed (SID) with ALE Property Group (LEP) to acquire all of the LEP stapled securities via schemes of arrangement.
Total enterprise value consideration, including transaction costs, will be approximately $1.68 billion.
Hostplus is currently the capital partner in the Charter Hall-managed Long WALE Investment Partnership (LWIP) and, if the transaction is successful, the fund and CLW will own 50 per cent of LEP’s assets.
LEP currently owns well-known Australian venues including the Crows Nest Hotel in NSW, Miami Tavern in Queensland and The Brass Monkey in Western Australia.
“The transaction represents an opportunity for Hostplus members to gain exposure to a large scale portfolio of high quality hospitality assets,” Hostplus told InvestorDaily.
“Hostplus believes the transaction will positively contribute towards the fund’s primary objective of delivering retirement income security to its members.”
CLW fund manager Avi Anger said that the transaction would also deliver “significant benefits” to its securityholders.
“The transaction is consistent with CLW’s strategy to invest in high quality real estate assets that are predominantly leased to corporate and government tenants on long term leases,” Mr Anger said.
“We are pleased to be able to continue our partnership with Hostplus, a leading Australian Superannuation Fund, in investing in high quality pubs and liquor retail outlets leased to Endeavour Group.”