This article is from the Australian Property Journal archive
ING Real Estate Healthcare Fund has sold a 50% freehold interest in the Epworth Freemasons Private Hospital in East Melbourne to the Epworth Foundation for $14 million.
Epworth is the current tenant of the hospital at Clarendon St East Melbourne. Settlement is expected on March 15.
This asset was purchased by IHF in 2006 for $14.3 million with Epworth acquiring the operating business and entering into a five year lease of the site and a Development Deed.
The sale of a 50% interest will crystallise a profit share payment to Epworth at settlement. The net proceeds realised by IHF of $11.0 million will be used to retire bank debt and as a result, the fund’s gearing will reduce on a pro forma basis from 54% at December 2009 to 52%.
As part of the above transaction, IHF and Epworth will continue to advance the redevelopment of the site as a major private hospital and have also extended the existing lease by 12 years to 2026.
The proposed redevelopment includes a major health campus comprising 268 beds, 8 operating theatres, full diagnostics, radiotherapy and medical consulting. A new 20-year lease will replace the existing lease on the satisfaction of practical completion.
Australian Property Journal
