- Kensington building has a total net lettable area of $80.15M
- Near the UNSW Anzac Parade Light Rail Station
- Charter Hall has over $3BN worth of assets under its broader Social Infrastructure strategy
Charter Hall Direct PFA Fund (PFA) has announced the off-market acquisition of an office campus currently leased to the University of New South Wales (UNSW).
The property at 221-227 Anzac Parade, Kensington was acquired by Charter Hall for $80.15 million, with the transaction brokered by Luke Billisu, the Head of Capital Markets New South Wales for JLL.
The seven-storey building was completed in 2005 and consists of 10,685sqm of net lettable area situated on a 2,466sqm site. It is located directly opposite the main Kensignton campus for UNSW and is near the UNSW Anzac Parade Light Rail Station on the new Sydney CBD and South East Light Rail line.
“This additional University leased asset expands our exposure to higher education and the life sciences sector which we see as a key growth component of our Social Infrastructure strategy which has grown beyond $3 billion in assets.
We welcome another relationship with UNSW, extending our broader university relationship exposures.”
Mr David Harrison, Charter Hall Group Managing Director and CEO
Steven Bennet, Charter Hall’s Direct CEO, Steven Bennet, said that the opportunity is consistent with PFA’s strategy of acquiring assets that have long leases in place to strong tenant covenants.
“PFA continues to attract new equity flows as investors are attracted to the quality of the office portfolio with over 60% government tenant exposure with the remaining income underpinned by excellent tenants such as UNSW, whilst the 6.5% plus income yield and monthly distributions is quite compelling.”
Steven Bennet, Charter Hall Direct CEO
Charter Hall’s Direct PFA Fund now has 18 investment properties within its $1.8 billion portfolio, with the lease expiry weighted average currently at 7.8 years.