Social infrastructure fund reweighs portfolio
Charter Hall has announced a handful of property deals for its Social Infrastructure REIT (CQE).
In the biggest direct trade, it is paying $68.4 million for a 22.5 per cent stake in a Western Sydney University backed vertical campus, at Parramatta.
The result for the interest in the One Parramatta Square reflects a 6.2pc initial yield.
The seller is the Charter Hall Direct Office Fund.
Western Sydney University owns half the property.
In the ACT, CQE is repeating a move this month by Charter Hall’s Long Wale REIT (CLW), increasing its share of Symonston’s Geosciences headquarters (pictured, top), from 25pc to 33.3pc.
Like CLW, it is paying $28.7m on an 8.4pc initial yield.
Charter Hall paid $370m for the 1.6ha asset in 2022 – a record price for a Canberra property.
That seller, German asset manager REAL IS, coincidentally also set a price watermark when it bought it from the Motor Trades Association in 2006 for $234.1m.
“This unique social infrastructure asset is fully leased to a federal government agency and incorporates specialised laboratory facilities with a net lease structure of 6.9 years and 3pc fixed annual increases,” the manager said in a statement.
Also being reported on behalf of CQE this week is the sale of 30 early learning centres for a total $151.1m – an average yield of 4.4pc and a premium to book value of 8.3pc.
Finally – as reported February – the fund bought a healthcare investment in Perth’s Osborne Park from Australian Unity for $47m – a 6.4pc return and discount to (the $48.1m) book value).
Last week we reported Charter Hall, on behalf of CLW, traded assets including a stake in a federal government backed dog training facility on 38.5ha in Melbourne’s Bulla.
Subscribe to our newsletter at the bottom of this page.
