Major fund manager enters new sector with two Gold Coast assets
Real Asset Management is recording a loss selling two Gold Coast clinics after three years.
The Highlands Medical Centre and Parkwood Medical Centre are fetching $12.8 million – a blended 8.7 per cent yield – from EG Funds.
They are the buyer’s maiden healthcare sector investments; it is now calling on backers for a fund projecting an average 8.4pc per annum distribution, paid quarterly.
EG approached RAM for the assets direct.
RAM records another loss on clinic
RAM paid Centuria $15.9m for the Gold Coast properties in late 2021, holding them in the Essential Services Property Fund (REP).
The Highlands Medical Centre at 95 Alexander Drive, Highland Park, cost $8.5m and is speculated to be trading for $6.84m.
The Parkwood Medical Centre, at 306 Olsen Avenue, Parkwood, meanwhile, which set RAM back $7.4m, is believed to be selling for c$5.96m.
The deals come three months since we reported RAM, for REP, banked $23m for New South Wales’ Tanilba Bay Shopping Centre, north of Newcastle (story continues below).
Last November meanwhile, REP shed The Lakes Medical Centre in Perth for $7.6m, a drop on the $8.9m it outlaid in 2022.
EG to hold in trust
The blended weighted average lease expiry for the Gold Coast clinics is three years, inclusive of a rental guarantee.
“Located in key growth corridors, these properties provide essential primary healthcare services, serving as a frontline solution to alleviate pressure on Australia’s increasingly stretched hospital system,” EG director, Healthcare, Shay Ramalingam, said.
“Leased to IPN, Australia’s largest operator of GP Clinics and a division of ASX-listed Sonic Healthcare…these facilities play a vital role in reducing hospital admissions and improving patient outcomes,” he added.
“The Gold Coast assets were acquired off-market through a targeted investment framework that integrates demographic trends, health data and supply dynamics,” according to the executive.
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