This article is from the Australian Property Journal archive
CENTURIA has expanded its unlisted healthcare property fund further, paying $57.3 million for NSW government and Ramsay-occupied medical centres, and an under-construction allied health clinic as investor appetite grows for the asset class.
Centuria Healthcare Property Fund (CHPF) has generated a bookbuild of about $22 million for its third equity fundraise, and has now raised $107 million since its launch in August.
Centuria has been building a war chest for acquisitions across its unlisted funds platform, having raised more than $160 million across three funds so far in 2021. This will underpin the group’s upgraded guidance and some $287 million in acquisitions of industrial and health care assets.
The pure-play unlisted open-ended CHPF’s assets under management now totals 10 properties worth $219.9 million. CHPF has a target distribution rate of 5.75c per unit for the financial year.
Its new acquisitions include modern, three-level Coffs Harbour Specialist Centre, anchored by the NSW Government’s Mid North Coast Local Health District for $23 million. The circa 3,400 sqm property at 343 Pacific Highway is within the Coffs Harbour health precinct, adjacent to the major regional public hospital undergoing a $194 million development.
The Cairns Day Surgery was picked up for $21.6 million. Anchored by private health giant Ramsay, the two-level short stay hospital has a lettable area of 2,470 sqm and is located at 156-160 Grafton Street, within a short distance of the public Cairns Hospital and Cairns Private Hospital.
In the Moreton Bay region, $12.7 million was spent on acquiring the Murrumba Village Medical Centre at 1613 Anzac Avenue in Murrumba Downs. It will provide allied and ancillary health services upon completion in March of 2022.
Andrew Hemming, Centuria Healthcare managing director, investor appetite has been strong since the fund’s launch.
“The fund is continuing to expand its portfolio, which is aligned with our strategy to secure modern, purpose-built assets that lend themselves to efficient and effective models of care.
“Our last capital raise before Christmas saw the fund substantially oversubscribed. Needless to say, our focus remains on meeting investment demand for high-quality healthcare assets.”
Institutional investors are looking to expand into the healthcare asset class, which has grown in stature as a viable alternative sector as it demonstrated its resilience throughout the pandemic.
HomeCo recently paid $163 million for six health, education and government services properties, as it considers options for a new health, wellness and government spin-off trust, while Real Asset Management acquired three regional hospitals in Tasmania and New South Wales for $100 million as it moves forward with plans to list an essential services property trust on the ASX amid growing institutional demand for healthcare and medical assets.
ASX-listed investor Elanor added a medical facility in Perth’s south west to its growing Elanor Healthcare Real Estate Fund, quickly following its acquisition of two Woolloongabba properties leased to the state government’s Metro South Health for more than $117 million.
In October, Dexus joined forces with its Healthcare Wholesale Property Fund to buy the Australian Bragg Centre in Adelaide, the nation’s first proton therapy centre, for $446.2 million.
Meanwhile, Perth-based Mair Property Funds has paid $16 million for a retail and medical centre in Mandurah for its new commercial property fund.
