Charter Hall trust to buy new Mater HQ for $122.5 million

9 October 2020, Written by Business News Australia

Charter Hall trust to buy new Mater HQ for $122.5 million

Charter Hall's Social Infrastructure REIT (ASX: CQE) has entered into an agreement to purchase Mater Misericordiae's (Mater) new corporate headquarters for $122.5 million today.

The agreement to acquire a 100 per cent freehold interest in 14 Stratton Street, Newstead, is on a sale and leaseback basis with Mater Queensland's largest Catholic, not-for-profit health provider.

Mater owns and operates an extensive network of hospitals, health centres and a research institute, and holds gross assets worth more than $1 billion.

The currently under construction Stratton Street property, comprised of an A-grade, 11-storey building, is underpinned by a new 10-year lease to Mater.

Once complete, the building will be the new corporate headquarters for Mater, as well as offering healthcare training facilities.

Mater will fit out the building which is located in close proximity to their existing hospital and training campus in South Brisbane.

"We are excited about establishing a relationship with Mater as a major tenant customer within our growing Social Infrastructure portfolio, further reinforcing our commitment to grow our reach with major providers of Social Infrastructure services," said Charter Hall group managing director and CEO David Harrison.

"We have invested in this near Brisbane CBD location for a decade having developed the $230 million headquarters for Aurizon at 900 Ann Street, Fortitude Valley and the $240 million Bank of Queensland anchored office project at Newstead nearby."

Following the acquisition, CQE's income from social infrastructure properties outside of childcare will increase from 4 per cent to 11 per cent of portfolio income on a pro-forma basis.

Shares in CQE are up 2.51 per cent to $2.86 per share at 10.15am AEDT.

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