Centuria boosts healthcare fund value 20pc with four acquisitions

Centuria has picked up four more assets for its Healthcare Property Fund (CHPF).

In Melbourne’s Mount Waverley, the manager is paying $51 million – reflecting a 4.8 per cent yield – for the Vitro Diagnostic Laboratory.

At 77-97 Ricketts Road, the two storey asset contains 8046 square metres of area – all of which is to be renovated from April.

ASX-listed Paragon Care occupies the bulk of it (90pc). Builder FIMMA rents about 3.7pc. The balance is vacant.

CBRE’s David Aiello and Sasan Misaghian were the brokers.

Meanwhile at St Ives, CHPF is picking up small dementia care accommodation complexes:

  • 3 Garrick Rd, with 10 beds, for $4m, and
  • 49 Benaroon Drive, which can accommodate seven residents, and is costing $3.3m.

Both assets are leased for 2o years; each are trading at a five pc return.

In Adelaide’s West Lakes, Centuria is exercising a put and call option to purchase the West Medical Hub, in Charles Street, for $13m – a 6.15pc yield (story continues below).

Containing 2092 sqm, it is near a 1300-lot housing estate and Uniting SA aged care community.

“Within the past 12 months, CHPF has increased its portfolio by 198pc, largely driven by investor appetite for modern, high quality healthcare properties that provide favourable leasing covenants including long leases and blue chip tenants,” Centuria Healthcare managing director Andrew Hemming said.

The manager will now launch a $34m capital raising for the unlisted fund which holds 18 assets worth a total of $414m.

Following settlement of the latest properties, the entity’s Weighted Average Lease Expiry becomes 11.8 years.

The portfolio’s vacancy is 0.9pc.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.