This article is from the Australian Property Journal archive
CENTURIA Capital Group (ASX: CNI) has gone shopping for healthcare and retail assets, picking up circa $223 million of acquisitions in an Alexandra private hospital development and Cameron Park Plaza in Newcastle.
The new private hospital project was purchased for $163 million and will be developed in the healthcare real estate focused joint venture, Centuria Prime Partnership (CPP), with Morgan Stanley Real Estate Investing (MSREI) providing sponsorship.
The development is placed on a circa 3,000sqm site at 28-32 Bourke Rod in Alexandria, NSW and is set to comprise a circa 10,500sqm seven-level, purpose-built hospital.
“Alexandria benefits from its proximity to Sydney’s CBD while providing significantly sized land parcels that are ideal for private hospitals, which require large floorplates and multiple levels,” said Jason Huljich, joint CEO of Centuria.
Set to be complemented by allied health operators, the hospital is currently 43% pre-leased on a 15-year term.
“This is a rare opportunity to deliver new, bespoke healthcare infrastructure in such a central location for Sydneysiders, which is why we are confident it will attract other allied health operators seeking to co-locate at the hospital,” added Huljich.
This latest acquisition brings CPP’s portfolio up to four assets with an estimated end value of more than $372 million.
Meanwhile CNI acquired a neighbourhood shopping centre in Newcastle for $60.25 million in the first NSW neighbourhood shopping centre sale and leaseback from either major supermarket operator in the last 12 months.
Built in 2020, Cameron Park Plaza is one of the NSW city’s newest neighbourhood shopping centres, spanning 7,037sqm across a single level and anchored by a 3,857dqm Woolworths supermarket and BWS, located at 73 Northbridge Drive, 17km west of the Newcastle CBD and 110 north of Sydney.
James Wilson and Alex James-Elliott of Colliers were appointed to negotiate the deal via an expressions of interest campaign, which drew in more than 180 purchaser enquiries and 11 first round offers, on behalf of Woolworths Group’s development business Fabcot.
“Cameron Park Plaza generated incredibly competitive bidding from private and institutional investors, with the non-metro NSW Neighbourhood Shopping Centre campaign recording 5 offers at or below a 5 per cent fully leased yield,” said Wilson.
In addition to the supermarket giant, tenants include a PETstock, Snap Fitness, a medical centre and 17 specialty shops, with more than 90% of the centre’s gross income underpinned by national and chain retailers.
“The benchmark result highlights the depth of market targeting high quality Neighbourhood Shopping Centres that feature strong income growth potential,” added Wilson.
The property is placed in Newcastle’s western growth corridor within a fast developing retail and community services precinct and spans a 3.77-hectare B2 Local Centre zoned site, with only 18.6% currently being utilised.
The centre sits amongst a recently developed McDonald’s and KFC, with future development projects including an EG Fuel Service Centre, tavern, childcare centre and council library.
As a result of the high influx of enquiries and offers, Colliers has identified around $500 million of qualified undeployed capital still waiting to be invested.
“We are currently working with a select number of the underbidders seeking to secure similarly strong performing neighbourhood shopping centres in NSW regional and metropolitan locations,” said James-Elliott.
