CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

14 Stratton Street Newstead sold for $122.5m in two-tiered deal

09/10/2020

The Charter Hall Social Infrastructure REIT (ASX: CQE) has finalised a deal to acquire a 100% freehold interest in the site at 14 Stratton Street, Newstead, Queensland, for $122.5 million representing a 4.84% yield. 

Peter Court, Mike Walsh and Fred Le Fanue from Cushman & Wakefield’s Middle Markets team exclusively managed the off-market deal, which ultimately comprised a dual transaction. This included initially negotiating the purchase of the 9,088 sqm building on a vacant possession basis from Silverstone Developments, then Mater then structured a 10-year leaseback to themselves, and then onsold the building with a contemporaneous exchange.

14-Stratton-Street-Newstead

The site is currently being developed with the construction of a A-grade, 11-storey building with 5-star NABERS rating, slated for completion in June Quarter 2021, which will form Mater’s new corporate headquarters and provide training facilities. Mater is one of the largest not-for-profit employers in Queensland with more than 10,000 staff, and incorporates Mater Health, Mater Education, Mater Research and Mater Foundation with a network of hospitals across the state.

Mike Walsh, Director and Joint Head of Middle Markets, Cushman & Wakefield, said: “This was a complex transaction that leveraged a unique opportunity for Mater to capitalise on current capital market dynamics. Achieving a yield of 4.84%, the strong outcome highlights the ongoing resilience of the Brisbane office market.”

Peter Court, Director and Joint Head of Middle Markets, Cushman & Wakefield, added: “We continue to see the market emphasise the importance of strong tenant covenants and tenure, which was has remained heightened throughout the COVID-19 pandemic. The end result of this deal was particularly pleasing.”

David Harrison, Charter Hall Group Managing Director and CEO, commented: “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.”

Dr Peter Steer, Mater CEO, said: “the new office location will enhance the organisation’s services to the community as well as creating capacity for further development at Mater’s South Brisbane site.”

We are excited to be able to provide a more contemporary environment for our staff and students, and to be accelerating our Mater Hill master plan with this lease arrangement.”

“Importantly, our new location will also enable us to move forward with innovative new approaches to health, education and research in support of our Mission for the community.”

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS