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Charter Hall Group (Charter Hall or the Group) is pleased to announce two of its funds have acquired two newly constructed, A-grade properties - TAFE’s Gold Coast campus and a specialist medical facility, both in Robina, Queensland, for the combined sum of $80 million.
Charter Hall Social Infrastructure REIT (ASX:CQE) and Charter Hall Direct Long WALE Fund (LWF or the Fund) each hold a 50 per cent interest in the properties. These assets are well-positioned in the Gold Coast’s high-growth corridor with strong tenant covenants, both providing essential services.
Located in the Acuity Business Park at 209 Robina Town Centre Drive, Buildings 2 and 3 are situated in the heart of Robina’s growing corporate, medical and educational precinct; just 80 metres from Robina’s train and bus interchange and 300 metres from public and private hospitals.
The properties are underpinned by long term leases to TAFE Queensland (a State Government owned not-for-profit vocational education provider) and Wise Medical. Both are tenanted with 10-year lease terms with average fixed annual rental increases of 3.2 per cent. Settlement is expected to occur in September 2022.
Charter Hall Direct CEO, Steven Bennett, said, “These acquisitions offer diversity to 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. Following this transaction, the Federal and state governments now represent over 30 per cent of the LWF’s net property income.”
CQE Fund Manager, Travis Butcher, said, “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.”
“These acquisitions demonstrate the benefits of a broadened strategy. which provides CQE with greater opportunities for investment in premium assets with strong property fundamentals.”
Leading the way as a sustainable vocational institution in Australia, the TAFE Robina campus will ensure that sustainability is embedded into every aspect of campus operations, including campus design, course curriculum and student life. The facility also received international recognition for sustainability, receiving an award for Excellence in Construction from the World Federation of Colleges and Polytechnics 2022.
Robina will be Wise Medical’s second clinic (the first in Macquarie Park, NSW). These clinics were established to provide a greater choice for patients to access emergency medical treatment, without the patient having to visit a hospital. Wise Medical will offer specialised emergency medical and dental facilities, as well as hospital accommodation.
This transaction was completed with the developer, Alceon Qld. Alceon and Charter Hall will continue to work together on the delivery of additional social infrastructure properties. The transaction was undertaken together, off-market.