This article is from the Australian Property Journal archive
The RAM Essential Services Property Fund has bought the Cairns Day Surgery from Centuria for $23 million and is in due diligence to acquire a further $100 million worth of healthcare assets.
The Cairns Day Surgery is anchored Ramsay Health Care, Australia’s largest private hospital operator.
The Cairns Day Surgery was sold by the Centuria Healthcare Property Fund (CHPF), which acquired the hospital in March 2021 for $21.6 million.
Located at 156-160 Grafton Street, within a short distance of the public Cairns Hospital and Cairns Private Hospital, the two-level short stay hospital has a lettable area of 2,470 sqm.
At the same time, the fund has sold another three non-core assets, including the Bowen Hills Fertility Clinic, the Parkwood Family Practice and Highlands Health Centre on the Gold Coast for $27.4 million, bringing the total asset recycling to 11 assets worth $119 million at a cumulative yield of ~5.7%.
RAM head of real estate Matthew Strotton said the divestments have allowed the fund to pursue targeted, accretive acquisitions that strengthen tenancy profile and fund duration.
“We will continue to pursue selective acquisitions and importantly, look to activate value-add alternatives as capital market conditions continue to improve. New acquisitions may provide for more value-add upside, like Cairns,” Strotton said.
Meanwhile RAM is undertaking DD to acquire a further $100 million of private surgical hospitals and healthcare acquisitions, which Strotton said will play a key role in further diversifying the portfolio.
