This article is from the Australian Property Journal archive
CHARTER Hall Social Infrastructure REIT (ASX: CQE) has settled its $122.5 acquisition of the Mater headquarters and training facilities, while increasing its debt facilities by $100 million.
The acquisition for the Newstead based Mater Misericordiae Limited property, which was announced in October of last year, has been settled.
The new Mater’s A-grade 11-storey headquarters, at 14 Stratton Street, was under construction at the time of the purchase and was being fitted out by the not-for-profit, with the headquarters also set to achieve a 5-star NABERs rating.
The sites, located around 2.6kms north-east of the Brisbane CBD, were purchased at a passing yield of 4.84% and include a new 10-year lease to Mater with a fixed annual rental increase of 3.0%.
The property was acquired by the REIT in a sale and leaseback transaction with Mater, who are Queensland’s largest catholic not-for-profit health provider. Mater currently holds net assets worth over $1 billion.
Additionally, in June, the REIT has increased its debt facilities to $600 million, with the additional facilities provided by a new financer, making the REIT’s funding sources more diversified.
With this increase, CQE will have approximated $210 million of investment capacity, following the Mater acquisition and adjusting for already committed acquisitions and divestments.
The REIT is also extending its existing debt facilities so no debt will mature until May of 2024, for a new weighted average debt maturity of 4.1 years.
As of mid-May, Charter Hall’s total acquisitions in FY21 across the office, retail, industrial and logistics, and social infrastructure sectors stood at about $7 billion.
With the group’s wholesale industrial and logistics fund last week securing a 90-year leasehold in 35 hectares of the $300 million-plus Light Horse Business Hub in western Sydney.
