- The properties includes the Robina TAFE and a Wise Medical medical centre
- Sale price reflects a passing yield of 4.4%
- Investment came from both Charter Hall's Social Infrastructure and Direct Long WALE Fund
Charter Hall’s Social Infrastructure REIT (ASX: CQE) has announced the acquisition of a 50% interest in two newly constructed assets in Robina, Queensland for a total of $80 million.
The purchase price of the properties, a TAFE campus and a specialist medical facility reflect a passing yield of 4.4%, and were acquired in conjunction with Charter Hall’s Direct Long WALE Fund (LWF), which acquired the other 50% interest.
Charter Hall Social Infrastructure REIT is the largest ASX-listed real estate investment trust investing in such assets.
The centrally located properties are near Robina’s growing corporate, medical and educational precinct, and 80 metres from Robina’s train and bus interchange. They are also 300 metres from the Robina public and private hospitals.
The assets have long term leases to TAFE Queensland and Wise Medical respectively. Both have a 10-year lease term with average fixed annual rental increases of 3.2%, and settlement is expected to occur in September 2022.
Alecon completed the transaction with Charter Hall, with the duo continuing to work together on the delivery of additional social infrastructure properties. This transaction was conducted off-market.
Charter Hall Direct CEO, Steven Bennett, said, these acquisitions offer diversity to the LWF’s growing portfolio, which now exceeds $515 million.
“The two social infrastructure assets offer strong returns in a tightly held market, with TAFE Robina and Wise Medical providing vital services to meet the area’s growing population,” he said.
“Following this transaction, the Federal and state governments now represent over 30 per cent of the LWF’s net property income.”
“Consistent with CQE’s strategy of investing in diversified social infrastructure assets with long lease terms and strong tenant covenants, we’re pleased to add high quality education and healthcare properties to the portfolio,” added Travis Butcher, Fund Manager of CQE.
“These acquisitions demonstrate the benefits of a broadened strategy which provides CQE with greater opportunities for investment in premium assets with strong property fundamentals.”
TAFE Queensland Robina features an operational conference and banquet centre, a specialised early childhood education training facility, fully equipped health and fitness centre and a lecture theatre.
Recently, the building was awarded Silver in the Construction Category at the World Federation of Colleges and Polytechnics Word Congress in San Sebastian, Spain.
Robina will be home to Wise Medical’s second clinic – the first is in Macquarie Park, NSW. The new medical asset will feature specialised emergency medical and dental facilities, a 9-bed ward, CT Scanning, X-ray and ultrasound facilities, an ambulance bay and ancillary office, reception and staff breakout areas.
