This article is from the Australian Property Journal archive
NORTHWEST Healthcare Properties’ Canadian REIT will expand its Australian healthcare real estate joint venture with GIC by an additional $2.4 billion as the sector continues to attract institutional investment.
The agreement with the Singaporean sovereign wealth fund will take total commitments in the joint venture, established in 2018, to over $6 billion. The first JV now has over 20 healthcare property assets around the country with over $3 billion invested in its initial Australian Institutional Joint Venture.
“A major focus for NorthWest is on creating large-scale healthcare precincts that deliver a range of critical health services to local communities, such as the recent expansion of our partnership with Epworth to activate its Geelong and Richmond precincts,” NorthWest’s president and CEO of Australia and New Zealand, Craig Mitchell said.
“Through our $3 billion development pipeline in Australia and New Zealand, we will continue to focus on servicing demand in areas of population growth, or where there is material underservicing of critical facilities to local communities across Australia.”
NorthWest Australia is the largest owner, manager and developer of healthcare real estate in the Australia and New Zealand, where it has over $6 billion of hospitals, medical centres, ambulatory facilities, aged care facilities and health precincts under management, and a development book totalling over $3 billion.
Assets under management in the region grew 33% in the 12 months to December.
The development pipeline currently has 10 projects under construction. NorthWest Australia specialises in the development of large, market-leading hospital, health and life sciences precincts that co-locate complementary health services and experts.
Northwest last month grew its relationship with Aurora Healthcare, acquiring land adjacent to the pair’s The Hills Clinic mental health hospital in Sydney’s Kellyville for a circa $50 million development.
Late last year it announced a $165 million investment into South Australia with a new healthcare precinct at Playford.
In Geelong, it is planning a $600 million innovation, education and healthcare precinct after making $128 million of purchases from Epworth, while it will be expanding the Epworth Richmond rehabilitation hospital close to the Melbourne CBD.
This week, Centuria Capital Group launched the new institutional healthcare venture Centuria Prime Partnership in partnership with Morgan Stanley Real Estate Investing. The seed assets for the partnership comprise three healthcare real estate assets with combined value of $210 million, with 99% occupancy and a portfolio weighted average lease expiry of 12 years.
Centuria closed 2021 with $466 million worth of healthcare real estate acquisitions on both sides of the Tasman.
