This article is from the Australian Property Journal archive
CROMWELL has acquired Adelaide’s Calvary Wakefield Private Hospital and Medical Clinic from Australian Unity’s Healthcare Property Trust for $50 million, a significant premium over the current book value of $40.19 million.
The sale price exceed the previous expectations of $45 million.
Located at 264-300 Wakefield St in the CBD, the hospital occupies an entire block of 8,275 sqm and has a gross building area of 15,500 sqm, providing 180 overnight beds and 33 day beds, and a medical centre together with 16 specialist medical sub-tenants.
It is expected that Calvary Health Care will vacate the property after their lease expires in July 2019, following the completion of their new facility.
Australian Unity head of healthcare property Chris Smith said the sale price is a significant premium to the current book value.
“We looked at a number of other uses for the property but determined that selling the property was in the best interests of investors and we are pleased to have secured a sale price that is well in excess of the property’s current book value of $40.19 million.
“Wakefield has been a strong performer for the HPT and has delivered an internal rate of return of 16.9% per annum for investors since its acquisition in 1999.
“We’re very pleased that we will be able to recycle the capital from the sale of this asset to put toward our $600 million development pipeline,” he concluded.
Australian Property Journal
