Queensland Treasury Corporation has sold the near-new Brisbane City Council Bus Network Terminal for $102.5 million.
Two Charter Hall funds – Charter Hall Long WALE REIT (CLW) and Charter Hall Education Trust (CQE) – are each paying $51.25 million for a half-share.
Completed in 2013, the Eagle Farm terminal occupies a 6.2 hectare site in Schneider Road. Within the TradeCoast industrial precinct, the property is eight kilometres north-east of the Brisbane CBD, a kilometre south of Brisbane Airport and three kilometres from the Port of Brisbane.
The deal is being struck on a five per cent passing yield.
Charter Hall Long WALE REIT fund manager Avi Anger said the property “is an excellent addition to the CLW portfolio, with a 19.2 year WALE, triple net lease to a government tenant and…excellent accessibility to major motorways and the Brisbane Port”.
“This acquisition continues to demonstrate our ability to secure high quality property on long leases to tenants with strong financial covenants that enhances portfolio quality.”
Head of Social Infrastructure and CQE Executive Director, Nick Anagnostou said “The Bus Network Terminal is consistent with CQE’s Social Infrastructure investments where, via government financial sponsorship, an essential service that supports, amongst other things, employment generation and its sustainability, is provided to communities”.
“The property supports approximately 24% (or approximately 8.1 million customers per annum) of the total Brisbane Bus Network,” Mr Anagnostou said. “The significant social and economic benefits that flow from an efficient public transport system underpin the investment”.
“These, together with a predictable long-term triple-net lease to government, and the potential for high underlying land value growth, are consistent with CQE’s value drivers and trademark attributes.
“The transaction is complimentary to and enhances CQE’s investment profile and activities including the Charter Hall CIB Fund which provides State Government Police and Court accommodation secured by long-term leases.”
In March, we reported that the Charter Hall Education Trust paid $75.5 million for a portfolio of 13 childcare centres on Australia’s east coast.
Late last year Charter Hall paid the federal government $118 million for two dog training facilities, in Banksmeadow, 12 kilometres south of the Sydney CBD and Bulla, 29 kilometres north-east of Melbourne (pictured, above).