Charter Hall Acquire Brisbane Bus Depot
Charter Hall have acquired the Brisbane City Council Bus Network Terminal at Eagle Farm for $102.5 million.
The bus terminal, was developed in 2013 and held by the Queensland Treasury Corporation with a triple net lease to the Brisbane City Council with fixed annual increases of 2.5%, with 19.2 years lease term remaining.
The acquisition is at a cap rate of 5% and will be jointly owned by the Charter Hall Long WALE REIT and the Charter Hall Education Trust (perhaps the buses are school buses!).
Charter Hall have confirmed that the Education Trust extends to Social Infrastructure assets and that the acquisition by the Education Trust is within its mandate.
Avi Anger, Fund Manager for the REIT said “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. 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.