This article is from the Australian Property Journal archive
HOME Consortium (HomeCo) has confirmed the $80 million acquisition of the Proxima project on the Gold Coast for its healthcare spin-off trust, in a fund-through deal valued at around $80 million.
The Southport project will be first health building within the Queensland government’s Lumina development, a 9.5-hectare zone dedicated to life sciences, health and technology-related businesses.
HomeCo has earmarked the building for its growing healthcare REIT, HealthCo, which recently purchased an eight-property portfolio operated by GenesisCare and a potential $500 million hospital and bio-med research precinct in south western Sydney’s Camden.
HealthCo will have a soon-to-be listed healthcare REIT that is looking to raise $600 million, in addition to $500 million for the companion unlisted wholesale REIT.
CBRE’s Michael Hedger, Joe Tynan, Mark Witheriff and Peter Chapple negotiated the deal between HomeCo and developer Evans Long, following the pre-lease of approximately 60% of the building to Queensland Health, Griffith University and Sanctuary Early Learning.
“We are continuing to see strong levels of capital seeking opportunities in the health sector, in particular private hospital and life sciences assets, with Australia on track to becoming a world-leading life sciences hub,” Hedger said.
Evans Long is the first commercial developer to commence construction in Lumina since the land, previously used as the Commonwealth Games Athletes Village, was handed over to the Queensland Government in 2019.
The fund-through sale value reflects an estimated fully leased yield of 5.65%.
Designed by Cottee Parker, the Proxima building comprises 10,600 sqm of leasable space over eight levels and strategically located across from Gold Coast Private Hospital.
Construction will begin shortly and is expected to be completed in late-2022.
It follows the NorthWest Healthcare Properties-managed Vital Healthcare Property Trust paying $9.4 million for a development site within the Coomera health precinct that has been earmarked by Queensland Health for a new public hospital to service the state’s fast-growing south east.
In the pre-IPO presentation, HomeCo outlined a forecast 4.5% annualised distribution yield and gearing of below 5% at completion of the HealthCo offer, that will provide funding capacity for acquisitions and its development pipeline.
The trust will debut with a 27-asset portfolio valued at $555 million, with a 9.4-year weighted average lease expiry, 96% occupancy, and weighted average capitalisation rate of 5.34%.
Tenants include the federal government, Queensland government and Griffith University, private hospitals Genesis and Acurio, aged care providers Uniting church and Aurrum, childcare operators including G8 Education and Guardian Early Learning, and allied health tenants and Chemist Warehouse.