This article is from the Australian Property Journal archive
KORDAMENTHA’S funds management arm has snapped up Epping Private Hospital and Medical in Melbourne’s northern suburbs in a $76 million deal, from a syndicate headed by Canada’s Northwest Healthcare Properties.
An estate management matter for one of the syndicate investors prompted the sale.
The KM Property Funds unit is acquiring the fully occupied 230 Cooper Street property, which will sit in the new unlisted fund.
The deal was struck on a 7.08% yield. Northern Health, the operator of the Northern Hospital which occupies , anchors the asset and, Major tenants include Genesis, I-Med, Melbourne Pathology, and Family Doctors, with public and private health care services available. The weighted average lease expiry is 8.7 years.
The deal is one of the biggest in the sector this year, which has seen a market cooldown across the traditional sectors.
Property fund manager ISPT is hoping for as much as $600 million from a divestment play that includes Melbourne’s GPO Building and which follows a strategic review of its Core Fund that heralds a shift away from the office and retail sectors towards health and life sciences and industrial.
In a recent APJ Talking Property podcast, MSCI Pacific head of real estate research Benjamin Martin-Henry discussed transaction volumes hitting the lowest level since 2011 with sales of industrial, office and retail assets all slumping in the first half.
Expressions of interest close today for the Manningham Medical Centre in Melbourne’s north east, which is tipped to sell for around $50 million. A general practice, Nexus Day Hospitals, Sonic Healthcare and Capital Radiology are among the tenants. CBRE has the listing.
