This article is from the Australian Property Journal archive
CENTURIA Capital Group has launched Centuria Prime Partnership (CPP), in a new joint venture in institutional healthcare with Morgan Stanley Real Estate Investing (MSREI).
The seed assets for CPP comprise three healthcare real estate assets with strong tenant covenants for a combined value of $210 million, with 99% occupancy and a portfolio WALE of 12-years.
“We are very pleased to announce our partnership with MSREI, which provides another opportunity to utilise our strong in-house healthcare real estate capabilities and further broadens our access to additional capital sources,” said Jason Huljich, joint CEO of Centuria.
While Centuria has already identified future assets for the fund, the current portfolio includes the $75 million Adeney Private Hospital in Kew, Victoria, The $97 million Westside Private Hospital in Brisbane, Queensland and the $38 million Mater Private Hospital, Townsville QLD.
The private Kew hospital is operated by a joint venture between doctors and Medibank and will provide four theatres, an infusion chemotherapy clinic and 30-beds. The asset has recently been granted a development approval for construction commencing June 2022.
The Brisbane asset is operated by Montserrat Day Hospitals, part of the ASX-listed Healius Limited. The hospital will provide four theatres, an infusion chemotherapy clinic, seven overnight beds and a 63-room medihotel.
While the Townsville hospital includes the Icon Cancer Centre and Queensland Xray, in addition to four theatres and 34-beds.
The partnership will see Centuria act as trust administrator, property manager and development manager, while MSREI has provided 90% of the investment, with Centuria making up the remainder.
Last year, MSREI entered another joint venture, backing Lendlease’s acquisition of a portfolio of logistics and development sites with an end value of $430 million.
“Since 2019, Centuria has significantly grown its healthcare AUM to approximately $1.7billion by focusing on healthcare real estate models of care that are cost-effective and deliver better patient care for our high-quality operational partners,” said Andrew Hemming, managing director of Centuria Healthcare.
Centuria’s current healthcare funds span five closed unlisted funds, a wholesale fund and three development funds.
This is in addition to the Centuria Healthcare Property Fund (CHPF), an open-ended unlisted retail fund, which comprises 21 healthcare assets for a combined value of $550 million, an occupancy of 99% and a 10.8-year WALE.
While last year the fund paid $57.3 million for medical centres occupied by the NSW government and Ramsay, as well as an under-construction allied health clinic.
“We will continue to focus on the acquisition of institutional-grade properties as well as developing out our $900 million healthcare pipeline,” concluded Hemming.
