This article is from the Australian Property Journal archive
Australian Unity Investments’ Healthcare Property Trust has settled on its purchase of Victoria House in Prahran, Victoria for $17.5 million.
Victoria House was sold a fortnight ago by the single asset MAB Healthcare Trust.
Victoria House consists of the Victoria Clinic, a mental health hospital; and the Victoria House Medical Centre, a two level medical consulting facility.
This is the second purchase for the AUI’s trust in the last six months following the acquisition of the Peninsula Private Hospital on Victoria’s Mornington Peninsula for $47 million.
AUI’s head of property Martin Hession said that the property fits AUI’s strict criteria of investing in quality properties that not only give good income through reliable tenants but also offer the potential for future development and growth.
“Acquiring suitable healthcare properties has been a major challenge recently but the market is easing slightly, with a number of more attractive properties becoming available which should allow us to continue to add to the trust’s high quality property portfolio.
“The outlook for healthcare property remains extremely positive, with Australia’s ageing population requiring more healthcare services. We believe that the increasing demand for these services will lead to greater demand for healthcare assets, and ultimately result in strong returns for investors,” he added.
The Victoria House building occupies an area of 3,514 sqm on a total site of almost 6,000 sqm, located in a mixed residential and commercial area, and fronts onto Malvern Road.
Current long-term tenants include Healthscope Limited, Victoria House Imaging, MIA Group, Melbourne Pathology and Radclin Medical Imaging.
Hession said the asset is an excellent addition to the trust.
“The HPT has been one of AUI’s most successful trusts since it was launched in 1999 and has produced investor returns of 17.67% over one year, 16.78% pa over three years and 13.55% pa over five years,” he added.
The purchase brings the HPT’s funds under management to almost $280 million and Australian Unity Investments total property funds under management to over $912 million.
By Kathryn O’Meara
