Sonic banks $445m for laboratory
Sonic Healthcare has sold a landmark Brisbane life science facility with a leaseback.
The Sullivans Nicolaides Pathology complex at 24 Markwell Street, Bowen Hills, collected $445 million from Charter Hall.
Developed in stages as a national testing centre, with 43,500 square metres, the result reflects a 5.62 per cent initial passing yield.
Sonic offered it with an initial 20 year leaseback.
The rental agreement is triple net with inflation indexed rental increases.
“This transaction is consistent with Sonic’s capital management strategy and focus on return on invested capital, releasing capital that can be deployed at higher returns, and crystallising increased value that was not reflected in Sonic’s financial statements.” Sonic Healthcare finance director and chief financial officer, Chris Wilks, said.
CQE to hold stake
The asset will be held by a new institutional partnership owned and managed by Charter Hall with the Charter Hall Social Infrastructure REIT (CQE) investing $53m for a 25pc stake (continues below).
The balance will be retained by other Charter Hall managed funds.
“This acquisition is aligned with our strategy to invest in long WALE essential service assets and provide the opportunity to multiple funds,” managing director and chief executive officer, David Harrison, said.
“With more than $12 billion of sale and leaseback, long WALE assets secured over many years, we see this new Sonic Healthcare relationship expanding our investment grade corporate relationships with excellent long term secure cash flows for our investor customers,” he added.
“We continue to see compelling opportunities in long WALE assets and believe these attractive yielding non-residential investments providing a compelling investment proposition through multiple cycles,” according to the executive.
CBRE’s Bruce Baker was the agent.
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