Charter Hall invests $80m in TAFE Campus & Medical Facility in Robina

14 July 2022

Charter Hall has invested $80m in two newly constructed properties, being a TAFE campus and a specialist emergency medical facility (Properties) located in Robina, Queensland reflecting a sharp passing yield of 4.4%.

The Properties have been acquired in conjunction in a 50:50 partnership between the Charter Hall Social Infrastructure REIT and the Charter Hall Direct Long WALE Fund.

The Properties are situated in the heart of Robina’s growing corporate, medical and educational precinct, being 80 metres from Robina’s train and bus interchange and 300 metres from the Robina 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 properties have 10-year lease terms with average fixed annual rental increases of 3.2%. Settlement is expected to occur in September 2022.

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 off-market.

Leading the way as a sustainable vocational institution in Australia, the TAFE Queensland Robina campus will ensure that sustainability is embedded into every aspect of campus operations, including campus design, course curriculum and student life. Students will be able to practice their skills in the live training facilities on campus, with an operational conference and banquet centre, specialised early childhood educator training facility, fully equipped health and fitness centre and lecture theatre. The building was recently awarded Silver in the Construction Category at the World Federation of Colleges and Polytechnics World Congress in San Sebastian, Spain.

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 on how they access emergency medical treatment, without the patient having to visit a hospital. The medical asset will comprise of specialised emergency medical and dental facilities, incorporating consulting and treatment rooms, 9-bed ward, CT Scanning, X-ray and ultrasound facilities, ambulance bay and ancillary office, reception, and staff breakout areas.

Travis Butcher, Fund Manager of CQE 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.”