Charter Hall Group has relaunched the mooted Charter Hall Long WALE REIT, downsizing the offer size and increasing the yield to potential investors.
Charter Hall Long WALE will seek to raise $516 million at $4 a security, which implied a 6.3 per cent distribution yield according to terms sent to potential investors.
The new property trust had initially set out to raise $871 million for a $1.12 billion market capitalisation with a 5.3 per cent forecast annualised distribution yield. However, Charter Hall and its brokers pulled the deal after failing to attract sufficient demand.
Charter Hall would have up to a $210 million co-investment in the new fund, while it had previously planned to retain up to a $250 million stake.
The new fund would come to market with a $826 million market capitalisation.
UBS and JPMorgan are running the deal as joint lead managers. It is understood National Australia Bank was added as a co-manager for the second attempt.
The new structure is expected to be more attractive to potential investors, given the higher yield on offer.
Charter Hall and its brokers were seeking institutional cornerstone bids for the new float by Wednesday afternoon, sources said.
If successful, Charter Hall Long WALE REIT would start trading on November 8.
The new fund would come to market with 66 properties independently valued at $1.25 billion and with a weighted average lease expiry ("WALE") of 12.5 years and full occupancy.
