This article is from the Australian Property Journal archive
THE Elanor Healthcare Real Estate Fund has acquired the Woolloongabba Community Health Centre in Brisbane for $37.25 million on a capitalisation rate of 6.0%, as investors continue to chase the resilient asset class.
This is the third acquisition for the fund, taking its portfolio to over $161 million.
Elanor CEO Glenn Willis said healthcare real estate has proven to be resilient during COVID-19.
“As a result, we continue to experience strong investor demand for the Fund and look forward to making further value enhancing acquisitions for EHREF. We see healthcare real estate as an area of significant growth potential for the group,” he said.
The Woolloongabba Community Health Centre is located within a prime health precinct close to the Princess Alexandra Hospital. The property is fully leased to the Queensland government’s Metro South Health Department with a weighted average lease expiry of 5.4 years.
The 27-chair dental surgery and mental health administration services occupies a 4,966 sqm of net lettable area. The property has 134 car bays and is situated on a substantial 4,150 sqm site with favourable zoning.
Elanor co-head of real estate and EHREF fund manager David Burgess said the fund delivers superior risk-adjusted returns by investing in commercial healthcare properties where tenants provide vital ‘out-of-public hospital’ services.
“This strategy capitalises on the growing cost pressures on the healthcare system, and combined with advances in health technology, is driving the delivery of healthcare services to lower-cost day surgeries and medical centres.” Burgess said.
Healthcare property has become one of the most sought-after assets. Recently Dexus acquired a medical research centre in Adelaide for $446.2 million.
