Centuria has purchased four more investments for its Healthcare Property Fund (CHPF).
In the priciest deal, the manager has outlaid $66.2 million for eight strata titles within Mulpha Group’s The Bond complex, under construction at 8 Elizabeth Macarthur Drive, Bella Vista.
The asset contains 5659 square metres – filling 53 per cent of the seven level, timber tower’s lettable area.
Four pre-commitments have been secured – to GenesisCare, which will occupy a 1060 sqm double storey subterranean oncology bunker for an initial 10 yrs, IVF specialist Dr Antony Lighten (760 sqm, 15 yrs), psychology allied healthcare provider, Talbots Centre (680 sqm, seven yrs) and childcare operator, Kinda-minda (920 sqm, 15 yrs).
A vacant component was offered with a two year rental guarantee.
The Weighted Average Lease Expiry is 7.9 yrs
The sale price reflects a 4.5pc yield.
Part of a master-planned community, and due for completion by the end of this year, 8 Elizabeth Macarthur Drive is next door to Aspen Group’s Norwest Private Hospital, which is operated by Healthscope.
Bella Vista is about 33 kilometres north west of Sydney.
CHPF invests again on the Gold Coast
On the Gold Coast, Centuria is paying $27.5m – reflecting a 4.72pc return – for the Robina Lifestyle+Medical Centre.
About 10kms south west of Surfers Paradise, the two level building at 299 Scottsdale Dve is three quarters pre-committed – Medical on Robina will occupy 968 sqm for an initial 20 yrs, while Green Leaves Early Learning will operate a childcare centre space, for 10 yrs.
Vendor Newlink Property Group offered a 24 month rental guarantee over the vacant area.
Neighbouring Robina Hospital, and due for completion at the end of the year, too, the property is also designed with a café and radiology clinic.
CBRE’s Michael Hedger was the marketing agent.
The purchase comes five months since CHPF sold RAM Asset Management two Gold Coast assets: the Highlands Health Clinic, in Highlands Park, for $8.5m, and 306 Olsen Avenue, Olsen ($7.4m).
Two WA assets
In Perth’s Gosnells, CHPF has outlaid $11.3m for the Tandara Medical Centre, at 168 Corfield Street.
Across a floor, the modern asset is leased to Partnered Health Medical Centre, an existing Centuria tenant customer, which sub-lets it to allied health practitioners, including a pharmacist, physiotherapist and radiologist (story continues below).
The WALE is 6.7 yrs.
The purchase price reflects a 5.15pc yield.
Meanwhile at Mandurah, about 65km south of Gosnells, CHPF has picked up the Greenfields Medical Centre, for $10.3m.
Due for completion within two months, the 1440 sqm single storey asset is pre-committed for 10 yrs to St John WA which will occupy it as one of four St John WA Urgent Care Centres, with a GP practice, dentist, pathologist and X-ray and procedure rooms.
About 140 sqm of the complex has been rented to physiotherapy provider Jarrad Lethbridge & Life Ready Health Group, until 2027.
The asset also contains 50 car parks.
Auswide International is the vendor.
Genera45’s Daniel Steffe acted for Centuria with the Western Australia and Bella Vista acquisitions.
CPHF smashes $600m
CPHF now holds a portfolio worth $627m, comprising 23 assets.
With a one per cent vacancy rate, the trust’s WALE is 10.3 yrs.
“In the past, healthcare operators have needed to adapt to older properties to suit their practice’s needs, which has often led to functional inefficiencies,” Centuria Healthcare managing director, Andrew Hemming, said.
“A good example of this are primary care and allied health providers occupying older residential buildings,” he added.
“The main drawcard for these [latest four] properties was their location within key suburban settings,” according to the executive.
“We are now seeing a change in operators opting for a premises that, within it, contains referral pathways for optimising their business, or are adjacent to or within a healthcare precinct.
“This new approach builds a strong ecosystem that’s a one-stop shop for patients requiring referrals, specialist treatments and rehabilitation while enabling operators to create a fully tailored offering where rooms can be set up for specific procedures, enabling a higher volume of patients to be seen”.
Centuria concluded its sixth fundraising for CPHF in March – attracting $50m against a $37m target.
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