This article is from the Australian Property Journal archive
CENTURIA Capital Group closed 2021 with $466 million worth of healthcare real estate acquisitions on both sides of the Tasman.
It capped off the year with the NZ$291 million ($276 million) sale and leaseback agreement with Heritage Lifecare for a portfolio of 38 geographically dispersed New Zealand aged care properties.
The assets were acquired the 30-year sale and leaseback triple net lease agreements providing for 100% occupancy.
Australia-based Centuria Healthcare Property Fund (CHPF) will own 36% of the portfolio, including 13 assets, adding to its portfolio of 18 assets worth $415 million. The balance of the portfolio will be owned by the new unlisted Centuria New Zealand Healthcare Property Fund.
“We are expanding the geographical diversification of CHPF with the fund’s first foray into the New Zealand healthcare real estate market,” Andrew Hemming, Centuria Health’s managing director said.
“We believe demand for aged care real estate within New Zealand will continue to increase due to the undersupply of existing facilities and an increasing ageing population.”
CHPF has also recently secured the Varsity Lakes Day Hospital for $75.7 million. The modern, purpose-built facility at 2 Lake Street on the Gold Coast is anchored by Queensland Health, and has a 6.6-year weighted average lease expiry and 100% occupancy.
The hospital’s facilities include six digitally integrated operating theatres, 24 consulting suites, physiotherapy, gym facilities, retail tenancies and a diagnostic imaging tenancy housing MRI, CT and X-ray.
“The Varsity Lakes Day Hospital is a rare high-quality facility on the Gold Coast, underpinned by strong tenant covenants and a resilient tenant profile. We foresee rising demand for these types of hospitals where the models of care promote better healthcare outcomes and are more cost-effective,” Hemming said.
In Sydney’s eastern suburb of Alexandria, CHPF has also bought a site for $38 million “for potential future development of a significant healthcare property.”
“The Varsity Lakes acquisition provides our CHPF investors with an immediate revenue stream while the Alexandria site acquisition presents an opportunity to unlock further value through development,” Hemming said.
