Charter Hall has acquired the Brisbane City Council Bus Network Terminal on Schneider Road in Eagle Farm, for $102.5 million. The bus terminal currently caters to about 8 million customers per annum,
Two Charter Hall funds – Charter Hall Long WALE REIT (CLW) and Charter Hall Education Trust (CQE) split the purchase at $51.25 million each, reflecting a passing yield of 5 percent and fixed annual rental increases of 2.5 percent.
“This property is an excellent addition to the CLW portfolio, with a 19.2 year WALE, triple net lease to a Government tenant and is very well located in a prime industrial precinct with excellent accessibility to major motorways and the Brisbane Port,” Fund Manager for the REIT – Avi Anger said.
“This acquisition continues to demonstrate our ability to secure high quality property on long leases to tenants with strong financial covenants that enhances portfolio quality,” Mr Anger said.
Considered as prime industrial social infrastructure asset, the latest investment is bolstered by a triple net lease to the Brisbane City Council, with 19.2 years remaining and has potential for high underlying land value growth, which CQE said is consistent with its value drivers and trademark attributes.
“The Bus Network Terminal is consistent with CQE’s Social Infrastructure investments where, via Government financial sponsorship, an essential service that supports, amongst other things, employment generation and its sustainability, is provided to communities,” Head of Social Infrastructure and CQE Executive Director, Nick Anagnostou said.
Located in the tightly held and land constrained prime industrial TradeCoast precinct, the 6-hectare Brisbane City Council Bus Network Terminal was developed in 2013. The terminal facility supports about 24 percent or 8.1 million customers per annum, of the total Brisbane Bus Network.
