Morning Colin,
One of the benefits of the new MM site we’re about to launch will the ability to visit a stock page and see all our past musings about that particular stock. We wrote the following about CLW at the time they were raising capital:
Property operator Charter Hall REIT (CLW) was previously earmarked for the chopping block from the MM Income Portfolio to make room for the purchase of Metcash (MTS), but just before we pressed the “sell button” they went into a trading halt to raise $250m through an institutional placement at $4.65, a 3.3% discount to last trade. We’ll now hold fire on that sale until this raise washes through. We’re in no great rush to sell CLW, however we are very low on cash in this portfolio and did not contemplate increasing our position : MM Income Portfolio
This equity raise was to fund the purchase of 3 good properties. 76-78 Pitt Street in Sydney via a sale and leaseback to Telstra (TLS) for $280m, a new Bunnings property to be developed in Caboolture for $28m and they bought a 49.9% interest in a pub in Darwin for ~$10m.
We continue to hold CLW but are not going to increase our position size through the raise
MM sold CLW although it’s a sound business however the macro environment working against long duration real-estate assets.
