Mallesons and Ashurst have advised on Charter Hall Long WALE REIT’s (CLW) new AUD2 billion (USD1.4 billion) secured debt platform.
The platform refinances the Australian Securities Exchange-listed REIT’s existing balance sheet debt and replaces its previous unsecured debt arrangements with a secured structure over its balance sheet-owned assets, diversified across a pool of 10 lending counterparties.
The refinancing also extends CLW’s weighted average debt maturity profile, increasing covenant headroom and decreasing its weighted average credit margin.
Partner Ken Astridge led the Mallesons team, which included senior associate Kate Dundon, solicitors Jade Dawson and Leilani Hunt, and law graduate Clinton Walsh. Real estate partner Felicity Savage and associate Peter Henshall also provided support.
“Mallesons advised Charter Hall Long WALE REIT (CLW) in negotiating the loan and security documentation for the platform’s debt refinance bilaterally with a pool of 10 lenders, as well [as] advising in respect of an early AMTN (Australian medium-term note) redemption for CLW,” he told Asia Business Law Journal.
Astridge said one of the key highlights was negotiating improved debt terms for CLW compared with its previous platform.
“The most challenging aspect of the transaction involved maintaining operational flexibility while obtaining the benefits from providing asset-level security within a large portfolio of 110 assets in each state in Australia and in New Zealand,” he said.
Ashurst also advised on the secured debt platform, with banking and finance partner Brenton Key leading the team.
Managed by Charter Hall Group, CLW invests in high-quality, long-leased real estate assets across Australasia.
