Centuria Property building a War Chest as it offloads Medical Centres
Centuria Property building a War Chest as it offloads Medical Centres
RAM Asset Management has picked up two more medical centres from Centuria Healthcare.
On the Gold Coast, the investments include the Highlands Health Centre at 95 Alexander Drive, Highland Park, which is costing $8.5 million, reflecting a 6.23 per cent net yield. Reported the AFR, City Wire & Property Market News while the second property – 306 Olsen Avenue, Parkwood, is trading for $7.4m – a 5.75pc net return.
The acquisitions come a week since the pair traded two more healthcare investments – at Perth and Mildura – for a total of c$16m.
Many of the deals, such as Centuria’s sale of the facilities in Mildura and Secret Harbour in WA, have a real estate flavour but others, such as Blackstone’s purchase of clinical trial provider Nucleus last week are more around service delivery.
Either way, the healthcare sector is an investment hotspot and more deals are on the way in what is left of 2021 as private equity buyers cash out, and the next wave of investors move into acquisition mode.
The recently refurbished, privately owned medical building at 1/36 Edmondstone Road changed hands through an off-market deal on an initial yield of 4.74 per cent. While the deal was struck before the fund went public last month, it went unconditional subsequently.
The facility has a 10-year average lease expiry and comprises 2158 sq m. Its tenant is a specialist fertility group and the centre includes an embryology laboratory, andrology facilities, procedure rooms and recovery areas.
“Over the last few years, this area adjacent to Perry Park in Bowen Hills has transitioned from being home to largely secondary, office warehouse-style buildings to being predominantly medical,” said JLL’s Tim Jones, who brokered the property with colleagues Simon Quinn and Sam Byrne.
Mr Quinn said healthcare real estate was performing strongly, with the defensive nature of the asset class proving popular.
“We have seen an influx of capital looking to be placed as more and more investors focus on the sector. This is driving significant capital growth for medical centres, day hospitals and private hospitals.”
Both Gold Coast properties are leased to IPN Medical Centres.
They were listed mid-year with a Brisbane asset – 1220 Sandgate Drive, Nundah – which is selling to a private investor for $6.9m at a 6.22pc net yield. Colliers’ Tom O’Driscoll, Ryan Chandler and Chris O’Driscoll brokered the deals.
“A total of 10 formal offers were received for the properties following the five-week campaign…with the competitive bids moving into four rounds of shortlisting” Brisbane based Tom O’Driscoll said, adding that it was the first time he has experienced that.
“Interest in the healthcare sector is running strong, especially in growth areas around south-east Queensland,” according to the executive.
“The response from our expressions of interest campaign from a range of prospective buyers, especially from interstate, demonstrated the demand for this class of assets in prime locations”
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REFERENCES
- Centuria divests $22.8m healthcare portfolio
By Marc Pallisco
- Healthcare sector is so hot, right now
By RAM Group
- RAM fund finds fertile ground in Bowen Hills
By Nick Lenaghan
- Centuria Healthcare divests pair of sites to Real Asset Management
By Australian Property Markets News