This article is from the Australian Property Journal archive
ELANOR has grown its Healthcare Real Estate Fund to over $267 million, picking up the Highpoint Health Hub in Brisbane’s inner suburbs for nearly $52 million amid ongoing demand for healthcare and medical property assets.
It is the sixth acquisition for the fund since its establishment in March of 2020.
The Highpoint Health Hub, located at 240 Waterworks Road in Ashgrove, was bought on a 5.75% capitalisation rate. It is 96% occupied with well-established health and wellbeing tenants.”
“The Elanor Healthcare Real Estate Fund (EHREF) continues to perform well, generating strong returns for investors,” ENN co-head of real Estate and EHREF fund manager, David Burgess said.
ENN CEO, Glenn Willis, said the healthcare sector “continues to present high-quality real estate investment opportunities with our healthcare fund being well-positioned to continue to generate strong returns for investors”.
Elanor last year bought the Metro South Health facility on 1.5 hectares of land in Woolloongabba for $80.2 million, following EHREF’s purchase of the Woolloongabba Community Health Centre, also leased to Metro South Health, for $37.25 million on a capitalisation rate of 6.0%.
Also along the Brisbane city fringe, Dexus recently paid $131 million in a fund through deal for the Spring Hill Medical Centre and the Herston Car Park next to the Royal Brisbane and Women’s Hospital.
Spring Hill Medical Centre is opposite St Andrew’s War Memorial Hospital and comprises a nine-storey development that will be anchored by a day surgery accompanied by ancillary healthcare services. Herston Car Park will be subject to a five-year lease and provides 354 car bays.
Dexus has been one of the most active collectors of healthcare assets in recent times. Its Healthcare Property Fund has just grown its funds under management to over $1.3 billion across nine assets with the purchase of Arcadia Pittwater Private Hospital and rehabilitation facility, which follows circa $600 million of healthcare acquisitions in the last financial year.
The sector has grabbed the attention of large-scale and institutional investment. Centuria Healthcare Property Fund has acquired a $167 million portfolio of assets spread across the country, while HomeCo’s new healthcare REIT made its ASX debut to a huge investor welcome, and asset and wealth manager Real Asset Management Group has just launched a $521 million real estate investment trust.
Last week, NorthWest Healthcare Properties REIT and Epworth Healthcare announced plans for a $600 million innovation, education and healthcare precinct in Victoria’s Geelong and expansion of the Epworth Elim rehabilitation hospital close to the Melbourne CBD.
NorthWest made a suite of purchases totalling $127.6 million across three triple-net leaseback deals with Epworth to facilitate the developments.
