This article is from the Australian Property Journal archive
CENTURIA Healthcare Property Fund (CHPF) has acquired a $167 million portfolio, nearly doubling the fund’s portfolio value to $342 million.
The new acquisition for the 2020 launched unlisted open-ended fund is comprised of seven assets, on a weighted average passing yield of 5.0%, increasing the total portfolio assets to 14 properties and portfolio value by 95%.
The move also boosts the CHPF WALE from 7.4 years to 11.4 years, with occupancy remaining full at 100%.
“We are pleased to expand CHPF not just with additional high-quality assets, but with assets that further geographically diversify the portfolio as well as diversify the fund into mental health,” said Andrew Hemming, managing director at Centuria Healthcare.
The diverse health assets include a $50 .1 million mental health hospital, a $12 million mental health outpatient centre, two dementia care residences for a combined $7.4 million, a $60.5 million private short stay hospital, a $8.45 million rehabilitation hospital and a $28.6 million medical centre.
“The portfolio acquisitions are all institutional-grade healthcare properties, which are also underpinned by leases to a diversified range of leading healthcare operators – both private and public,” added Henning.
The 4,856sqm NLA mental health hospital, the Perth Clinic, is located at 21-29 Havelock Street in West Perth and was secured with a 11.6-year WALE. As the largest mental health hospital in the city, the Perth Clinic is 100% leased to an established operator.
The 1,577sqm mental health outpatient centre, located at 411 Nepean Highway in Frankston, VIC is 100% leased to a government health service on an eight-year lease.
Meanwhile, both dementia care residences are fund-through projects, located at 18 Lisa Crescent and 35 Chiltern Crescent in Castle Hill, Sydney. They are 100% leased to Group Homes Australia on a 15-year term.
“Mental health hospitals, for both inpatients and outpatients, are a major growth area within the healthcare sector. Equally, dementia care operators that provide personalised, non-institutionalised homes – such as GHA – are growing in demand,” said Henning.
The short-stay hospital, the new Weststate Private Hospital, is a fund-through development located in Townsville, QLD and will amalgamate six land parcels into a single 8,000sqm site, which is pre-leased to Weststate on a 25-year term.
The 1,859sqm MetroRehab Hospital is located at 175 Addison Road in Petersham, Sydney and is 100% occupied and secured on a 13.2-year WALE.
Finally, the Sunbury Medical Centre, located at 38-44 Gap Road in Sunbury, VIC is 100% occupied and secured a 7.7-year WALE.
“Since CHPF launched a year ago, it has generated strong traction from investors seeking to benefit from this resilient asset class, which provides relatively stable income streams. Our open-ended fund enables investors to benefit from the healthcare real estate sector’s strong tailwinds, which is why each of its fundraises have been fully subscribed to date,” concluded Hemming.
In October, CHPF will settle another $11.7 million pipeline, which will bring the fund’s total value up again, to $354 million.
