Charter Hall Social Infrastructure REIT Notes from Western Sydney University Campus Tour

Research evidence excerpt

Charter Hall Social Infrastructure REIT Notes from Western Sydney University Campus Tour

J P M O R G A N Asia Pacific Equity Research

27 May 2026

Charter Hall Social Infrastructure

REIT Overweight

CQE.AX, CQE AU

Notes from Western Sydney University Campus Tour Price (27 May 26):A$2.49

Price Target (Dec-26):A$3.30

We attended CQE’s tour of its Peter Shergold Building asset at Western Sydney Australia

University (WSU) in Parramatta. This is CQE’s largest single position, valued at

Australian REITs

~$320m (CQE 50% stake, ~$160m). CQE acquired its 50% interest in the asset

in 1H26 from another Charter Hall managed fund, which originally developed the Richard Jones, CFA AC

asset in 2017 in partnership with WSU. WSU owns the remaining 50% and is also (61-3) 9633-4038

richard.b.jones@jpmorgan.com

the sole tenant on a 16-year lease. The asset reflects CQE’s broader strategy to

Connor Eldridge

reduce childcare concentration and grow exposure to high quality social (61-2) 9003-6415

infrastructure tenants. Our key takeaways are below. connor.eldridge@jpmorgan.com

• Largest single asset in CQE portfolio, valued at ~$320m. CQE’s 50% stake Adam(61-2) 9003-8010West

(~$160m) was acquired across 3 tranches in 1H26 at a 6.5% passing yield, adam.west@jpmorgan.com

purchased from another Charter Hall managed fund which developed the asset J.P. Morgan Securities Australia Limited

in 2017 in partnership with WSU. WSU co-owns the remaining 50%.

• ~200bp yield premium over childcare disposals. CQE acquired the Peter

Shergold Building at WSU at a 6.5% yield versus mid-4% yields on recent

childcare divestments. Figure 1: Building 1 (Peter Shergold

Building), Western Sydney University

• Attractive lease terms with strong tenant covenant. The asset has a 16 yr Parramatta City Campus