NorthWest outlays $93m on cancer centre

NorthWest last week paid $89.8 million for Epworth Geelong, which also includes undeveloped land.

New Zealand listed Vital Healthcare Property Trust – controlled by NorthWest Healthcare Properties Management – has outlaid $92.75m for Adelaide’s Tennyson Centre.

On 1.26 hectares, the 12 year old, 6567 square metre cancer centre at 502-520 South Road, Kurralta Park, is part occupied by Nexus Hospitals, which has in recent years been divesting assets – including, last November, to Centuria.

The price reflects a 4.7 per cent yield.

The property includes a 1920 sqm tract which the buyer intends to redevelop immediately.

To fund the deal and new buildings, NorthWest today launched a NZ$140m capital raising exercise.

“This acquisition is our first cancer centre of excellence and our third significant property investment in Adelaide,” Vital fund manager Aaron Hocky said (story continues below).

“It adds several established healthcare operators to Vital’s tenant base and is expected to provide ongoing Adjusted Funds From Operations growth for Vital’s unitholders,” he added.

Knight Frank’s Jack Dyson and Guy Bennett were the sales agents.

The purchase comes a week since we reported NorthWest paid Epworth $127.6m for interests in three Victorian healthcare assets.

Kurralta Park is about four kilometres south west of Adelaide.

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Marc Pallisco

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