ASX-listed Charter Hall Social Infrastructure REIT has acquired a 49.9% interest in the Innovation Quarter facility in Westmead, Sydney for $66.9 million, reflecting a 4.8% capitalisation rate.
The property is a newly constructed healthcare, medical research, education and training facility that has been jointly developed by Charter Hall and Western Sydney University.
The REIT funded the deal through the full divestment of securities held in Arena REIT and the divestment of five non-core early learning properties.
“Consistent with CQE’s active portfolio curation strategy, we’re pleased to add a high quality, new social infrastructure property to the portfolio with strong property fundamentals funded through the divestment of non-core assets,” CQE Fund Manager Travis Butcher said.
The property is an A-grade building with strong environmental credentials, designed to meet 5-star NABERS Energy and 4-star NABERS water ratings, 6-star Green Star rating and is expected to be certified Carbon Neutral Enabled.
Located at 164 Hawkesbury Road, the IQ asset was adjacent to Westmead Hospital, Westmead train station and the future Metro West station and Parramatta Light Rail station.
Westmead has Australia’s largest concentration of hospital and health services, co-located with research and education.
The property sits within the Westmead Strategic Precinct, whose primary function is as a health, research and education hub.
Western Sydney University occupies approximately 47% of iQ on a 15-year initial term with the CSIRO occupying approximately 16% of the property on a 10-year initial term. Other major tenants include Telstra Health, Psych Central and WentWest.
The REIT is the largest Australian ASX-listed REIT that invests in social infrastructure properties.