Adamantem offloads NZ aged care portfolio

Heritage Lifecare Stillwater. Top: Coldstream Lifecare & Village.

Adamantem Capital has sold 38 New Zealand aged care investments with a 30 year leaseback for $276 million.

The assets will be managed by the group’s Heritage Lifecare business.

The properties are being acquired by Centuria which will hold them in two unlisted open-ended trusts:

  • The Centuria Healthcare Property Fund (Australia), which will retain 13 of them;
  • The new Centuria New Zealand Healthcare Property Fund will control the balance.

“We are expanding the geographical diversification of CHPF with the fund’s first foray into New Zealand healthcare real estate,” Centuria Health managing director Andrew Hemming said.

“We believe demand for aged care real estate within New Zealand will continue to increase due to the undersupply of existing facilities and an increasingly ageing population,” he added.

Sydney based Adamantem was created six years ago by ex-Pacific Equity Partners directors.

The manager’s Fund I acquired the Heritage Lifecare business in 2017 – then grew the portfolio to 38 aged care investments with 2400 beds. The business also controls over 400 retirement village units.

CHPF grows east coast portfolio

On the Gold Coast, CHPF is paying Healthe Care $75.7m for the Varsity Lakes Day Hospital.

The property, 2 Lake Street, near Bond University, opened in 2015 as the Gold Coast Surgical Hospital (story continues below).

With six theatres, 24 consulting suites, physiotherapy and diagnostic imaging facilities (accommodating MRI, CT and X-ray), gym, retail and restaurant, Healthe Care picked it up in May, 2017, as part of a $155m takeover of Pulse Health.

The state government’s  Queensland Health signed a 10 year lease in October of that year.

Colliers’ Chris O’Driscoll and Shalain Singh were the sales agents.

In a third deal, CHPF is paying $38m for a development site in Alexandria, four kilometres south of Sydney.

“The Varsity Lakes Day Hospital is a rare high-quality facility o the Gold Coast, underpinned by strong tenant covenants and a resilient tenant profile,” Mr Hemming said.

“We foresee rising demand for these types of hospitals where the models of care promote better healthcare outcomes and are more cost effective,” he added.

“The…acquisition provides our CHPF investors with an immediate revenue stream while the Alexandria site…presents an opportunity to unlock further value through development”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of