Charter Hall picks up office, childcare centres

The Heidelberg office (marked) has the potential to make way for a circa-seven storey building.

Charter Hall has spent $58.4 million on a trio of assets for its Social Infrastructure REIT (CQE).

Fawkner Property recently paid Vicinity Centres $162.5 million for Mackay’s Mount Pleasant Centre.

In the biggest transaction, the manager is paying a speculated $38 million for a Heidelberg office four blocks from the Austin Hospital.

The deal for 456 Lower Heidelberg Road, with Fawkner Property, reflects a c3.8 per cent net passing yield.

The two level, 3549 square metre asset is leased for 9.5 years to Healius for support services, passive pathology and storage associated with a neighbouring laboratory.

After 2032, the 2422 sqm site at the north east corner of Banksia Street has development upside – being zoned Commercial 1 and within the Heidelberg Activity Centre.

Stonebridge’s Justin Dowers, Julian White and Kevin Tong marketed the property as having the potential to make way for 25 metre (so, seven storey) buildings.

Heidelberg is about 11 kilometres north east of Melbourne.

“The Heidelberg Activity Centre is one of Victoria’s largest medical precincts, with major hospitals including the Austin Hospital, Mercy Hospital for Women, Heidelberg Repatriation Hospital and Warringal Private Hospital all located in close proximity, as well as numerous specialist services,” a Charter Hall statement said.

The deal comes two months since Fawkner Property outlaid $162.5m for Mackay’s Mount Pleasant Centre.

That purchase, from Vicinity Centres, which managed it on behalf of Commonwealth Bank Group Super, reflected a 6.46pc return (story continues below).

In July, Fawkner Property spent $113.9m on a portfolio of 31 service stations spread across the east coast and in the Northern Territory, South Australia and Western Australia.

Not long earlier, the Melbourne fund manager paid Perron Group $195m for Perth’s The Square Mirrabooka – a shopping centre on 13.6 hectares – for its Essential Services Trust No 18.

Two childcare centres

Charter Hall also today announced the purchase of two South East Queensland childcare investments, all up containing 300 places.

Both assets are on 15 year rental agreements.                     

Each was acquired off-market.

“Consistent with our broadened investment strategy of investing in diversified social infrastructure with long leases and strong tenant covenants, it is pleasing to add these high quality healthcare and childcare properties to the portfolio,” CQE fund manager Travis Butcher said.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of