Asset managers trade two Victorian healthcare centres
Westbridge Funds Management has seeded a healthcare trust with two Victorian investments worth $22.5 million.
The pricier property – the Sandhurst Medical Practice at Bendigo – set it back $12.3m.
Barwon Property Funds was the seller – paying $12m in 2016.
The second asset, trading as the Croydon Family Practice, in Melbourne’s east, collected $10.2m.
Barwon was again the vendor, holding 10 years, when it paid $9.65m.
Westbridge will hold the investments in the Medical Property Fund, now seeking investors targeting seven per cent annual returns and a 12pc-plus internal rate of return.
Two more deals earmarked
Westbridge, for MFP, is due to settle on two more properties – one in Greenfields, near Mandurah, 34-36 Minilya Parkway, worth c$16m.
Anchored to Murray Medical Group, it adjoins the Peel Health Campus, with a 206-bed hospital and 106-bed Aegis aged care facility.
Barwon is again the seller, outlaying $14.275m in late 2020.
Also this year, that asset manager divested two Western Australian healthcare investments, one near Busselton to Optimus Private Equity, the other, at South Bunbury, to a local private investor.
The fourth Westbridge property is worth c$30m.
MPF is expected to hold eight investments worth a total $100m.
Seed assets
The Bendigo property, 84 Mollison Street, contains 2358 square metres over two floors fit out as seven tenancies, anchored to Sonic Healthcare arm IPN Medical Centres.
The Croydon asset, 24-26 Dorset Road, with 1245 sqm is anchored to Family Doctor.
There is also psychologist, dentist and chiropractor.
“We’re seeing a great window over the next nine months or so where we can buy great quality assets at much better prices than we could two years ago,” Westbridge chairman, Damian Collins, said.
“Across Australia, we are seeing demand for medical assets growing and forecasts indicate this will continue well into the future, particularly as the population continues to grow,” he added.
“Both locations feature favourable demographics for healthcare services, with Croydon’s population projected to grow from 120,304 residents in 2025 to 139,974 by 2046, and 20.5pc of residents aged over 65 years,” according to the executive.
“Similarly, Bendigo’s population of approximately 125,000 is expected to reach 172,000 by 2046 with 21.7pc of residents aged over 65 years”.
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