Australian industry superannuation fund Hostplus has partnered with a fund managed by Charter Hall group to take over listed pubs owner ALE Properties for A$1.68bn (€1.04bn).
The A$68bn super fund for the hospitality sector and the Charter Hall Long WALE REIT (CLW) are bidding for Australia’s largest freehold pub properties owner, which boasts a portfolio of 78 properties.
Charter Hall is offering a mixed cash and scrip deal at A$5.88 per share, a 25.21% premium to the pub owners’ last closing price of A$4.70.
Post-transaction, CLW and Hostplus would each hold a 50% interest in the acquired business.
Avi Anger, fund manager of CLW, said: “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.”
Hostplus first invested with CLW in 2014 when it backed Charter Hall in the purchase of 54 pubs from supermarket chain Woolworths for A$603m in a 50-50 joint venture.
Two years later, Hostplus topped up its initial investment, putting a further A$135m into a second fund to acquire three pubs, giving it a 90% stake in the assets.
Prior to the ALE deal, the combined value of the super fund’s pub investment with Charter Hall is worth more than A$1bn.
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