Charter Hall Social Infrastructure REIT is pleased to announce the acquisition of a 49.9% interest in Innovation Quarter (iQ). iQ is a newly constructed healthcare, medical research, education and training facility that has been jointly developed by Charter Hall and Western Sydney University in the growing healthcare and research precinct of Westmead, NSW.
CQE has acquired its 49.9% interest in iQ for $66.9 million on a 4.8% capitalisation rate. CQE has funded the acquisition of iQ through the full divestment of securities held in Arena REIT (ASX: ARF) and the divestment of 5 non-core early learning properties.
iQ is located at 164 Hawkesbury Road, Westmead, adjacent to Westmead Hospital, Westmead train station, 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. iQ 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.
iQ 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.
Travis Butcher, Fund Manager of CQE said: “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.”
Following the completion of this acquisition and based on information currently available and barring any unforeseen events, CQE re-confirms existing FY23 distribution guidance of 17.2 cents per unit.
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