Charter Hall Moves On University Campus for $80m


Charter Hall has purchased an office campus leased to the University of New South Wales in Sydney's eastern suburbs for $80.15 million.

Charter Hall's Direct PFA Fund bought the property at 221-227 Anzac Parade in Kensington, reportedly from an undisclosed Korean institution.

The asset is 100 per cent leased to the university and the deal reflects a 6.5 per cent yield.

The seven-storey building has 10,685sq m of lettable area on a 2466sq m site.

Charter Hall group managing director David Harrison said the purchase expanded its exposure to higher education and life sciences sector.

“We see the sector as a key growth component of our social infrastructure strategy, which has grown beyond $3 billion in assets,” Harrison said in a statement.

Harrison said the fund now had a portfolio of 18 investment properties, with a $1.8-billion portfolio value.

Charter Hall Direct CEO Steven Bennett said the purchase was consistent with the fund’s strategy of acquiring assets with a long lease underpinned by excellent tenants.

“PFA continues to attract new equity flows as investors are attracted to the quality of the office portfolio with more than 60 per cent government tenant exposure,” Bennett said.

Earlier this year, Cedar Pacific and UniLodge lodged plans for a $90-million student-housing project on the same street, at 177-197 Anzac Parade.

The proposal is based on the site's proximity to the campus.

In February, Charter Hall topped out on its 18-level education building at 6 Hassall Street, Parramatta.

Described as a $300-million Engineering Innovation Hub, the project is in partnership with Western Sydney University and the University of New South Wales.

The latest Charter Hall deal was an off-market transaction managed by Luke Billiau of JLL.

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