Charter Hall Social Infrastructure REIT adds to portfolio, acquires 21 centres at 4.6% yield

Charter Hall Social Infrastructure REIT adds to portfolio, acquires 21 centres at 4.6% yield

by Jason Roberts

December 28, 2021

Charter Hall’s social infrastructure focused REIT has confirmed the purchase of twenty one child care centres via two separate acquisitions for a combined price of $134.3 million representing a passing yield of 4.6 per cent. 


The move marks an active 18 months for the Trust after a substantial number of divestitures, including 20 centres in New Zealand, in the early part of the period, and a flurry of acquisitions, including the purchase of two large centres in November as well as these more recent acquisitions.


The Trust has acquired eighteen properties in Western Australia, thirteen metro and five regional, with an average WALE of 12.5 years and weighted average rental renewals of 3.4 per cent. 


All centres are leased to either Goodstart Early Learning or G8 Education and were acquired for $100 million at a purchase yield of 4.63 per cent. 


A smaller portfolio of three centres was also acquired with all centres located in Metropolitan Melbourne and leased to Nino Early Learning for $34.3 million and yield of 4.5 per cent. 


The two portfolios will be acquired with debt from CQE’s existing facilities which were increased to $700 million from $600 million and post this transaction will leave approximately $120 million of additional investment capacity. 


“We are pleased to add these quality childcare properties with strong property fundamentals to the portfolio and further our tenant customer relationship with these three operators,” Travis Burcher, Fund Manager of CQE said.


“The addition of these assets will result in gross asset exceeding $1.9 billion and continuing to be the largest listed social infrastructure fund in Australia.” 


To read the statement please click here