Charter Hall Acquires $445 Million Sonic Healthcare Life Science Facility in Brisbane Sale-Leaseback
Charter Hall and Sonic Healthcare have jointly announced the settlement of a $445 million transaction in which Charter Hall has acquired a 100% interest in the Sullivan Nicolaides Pathology life science facility located in the Brisbane CBD suburb of Bowen Hills, announced June 15, 2026.
Transaction Structure and Terms
The deal is structured as a 20-year triple-net sale-leaseback. The initial net rent is set at $25 million per annum, with rental increases indexed to inflation. The transaction was negotiated by Bruce Baker of CBRE on behalf of the vendor.
The property sits within a new institutional partnership owned and managed by Charter Hall. The Charter Hall Social Infrastructure REIT (CQE) is investing $53 million of equity for a 25% stake in the partnership, with the remainder of the equity to be held by other Charter Hall managed funds.
About the Facility
Sonic Healthcare developed the Bowen Hills facility across multiple stages as a national reference centre for highly specialised pathology testing. The site also serves as the main laboratory for Sonic Healthcare's Sullivan Nicolaides Pathology operation, which the announcement describes as the pathology market leader in Queensland and Northern New South Wales. The companies characterised the facility as an important piece of healthcare infrastructure for Queensland and Australia.
Strategic Rationale
Charter Hall Managing Director and Group CEO David David Harrison said the acquisition aligns with the firm's strategy to invest in long weighted average lease expiry (WALE) essential service assets across multiple funds.
"This acquisition is aligned with our strategy to invest in long WALE essential service assets and provide the opportunity to multiple funds," Harrison said. "With more than $12 billion of sale and leaseback, long WALE assets secured over many years, we see this new Sonic Healthcare relationship expanding our investment grade corporate relationships with excellent long term secure cash flows for our investor customers."
Harrison added: "We continue to see compelling opportunities in long WALE assets and believe these attractive yielding non-residential investments providing a compelling investment proposition through multiple cycles."
Sonic Healthcare Finance Director and CFO Chris Wilks described the transaction as consistent with the company's capital management strategy.
"This transaction is consistent with Sonic's capital management strategy and focus on return on invested capital, releasing capital that can be deployed at higher returns, and crystallising increased value that was not reflected in Sonic's financial statements," Wilks said. "We welcome this long-term relationship with Charter Hall."