Charter Hall will roll a 49.9 per cent interest in a recently completed office opposite Westmead Hospital into its Social Infrastructure REIT (CQE).
The $66.9 million sale of 164 Hawkesbury Road (pictured, top), within a master-planned precinct known as iQ, reflects a 4.8 per cent capitalisation rate.
Western Sydney University is the co-owner and anchor tenant of the building, also known as the first stage.
The CSIRO, Telstra, Psych Central and West Wind are amongst other businesses to commit.
A second iQ phase will add two more carbon neutral enabled offices.
All up, the innovation precinct is set to contain 43,000 sqm of commercial space and 2000 sqm of retail, including a supermarket.
Essential services including a childcare centre and fitness centre also form part of the design.
“Westmead has Australia’s largest concentration of hospital and health services, co-located with research and education,” the buyer said in a statement.
“iQ sits within the Westmead Strategic Precinct, whose primary function is as a health, research and education hub,” it added.
Also this week the fund manager confirmed it purchased 21 Genge St, Canberra, from Real IS for $290m – a deal we reported last September (story continues below).
Childcare centres, Arena REIT shares gone
iQ is taking shape on the grounds of WSU’s Westmead campus, at the south west corner of Darcy Rd.
The area is set to benefit from a Metro West station and Parramatta Light Rail stop.
It is also close to the suburb’s existing train station.
Charter Hall will fund the purchase by selling five CQE early learning centres and disposing all its Arena REIT shares.
“Consistent with CQE’s active portfolio curation strategy, we’re pleased to add a high quality, new social infrastructure property to the portfolio with strong property fundamentals funded through the divestment of non-core assets,” the fund manager’s, Travis Butcher, said.
Charter Hall is developing offices with WSU at Parramatta too.
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