- Acquisitions part of strategy to diversify the fund
- $51M spent on a diagnostic and manufacturing lab in Mt Waverley
- Other acquisitions include dementia care residences
The Centuria Healthcare Property Fund continues to grow, with $71.3 million of acquisitions announced to diversify the unlisted, open-ended fund.
The latest acquisitions include $51 million for the Vitro Diagnostic, Manufacturing Laboratory at Mt Waverley in Melbourne, $7.3 million worth of dementia care residences in the Sydney suburb of St Ives, and a West Lakes Adelaide medical centre development for $13 million.
The acquisitions solidify the unlisted fund’s diversity, which includes 18 assets worth $413.8 million in total.
The fund has a weighted average lease expiry (WALE) of 11.8 years and a 99.1% occupancy rate.
Centuria Healthcare Managing Director, Andrew Hemming, said he was pleased to announce further expansion of the growing fund, which includes life science laboratories – a new healthcare asset class for the fund.
“The development and manufacturing of in-vitro diagnostics will continue to experience tremendous growth, accelerated by the COVID-19 pandemic due to the volume of health screening required from nasal/saliva swabs to blood tests,” explained Mr Hemming.
“With a focus on diagnostics, we believe this is an area that will continue to be in high demand, requiring state-of-the-art facilities.
“The pandemic has also shone a spotlight on Australia’s developing healthcare sector.
Andrew Hemming, Centuria Healthcare Managing Director
“We are partnering with the country’s leading operators to provide healthcare facilities that meet the requirements of the community today and in the future,” said Mr Hemming.
About 90% of the Mt Waverley facility will be leased to ASX-listed Paragon Care for a 15-year term. A refurbishment will commence in April 2022, which includes a specialised fit-out supported by sustainable features such as solar panels.
The St Ives dementia care residences include a single-storey property that provides accommodation for 10 dementia-afflicted residents with another two-level residence to accommodate eight dementia patients.
“Within the past 12 months CHPF has increased its portfolio by 198%, largely driven by investor appetite for modern, high-quality healthcare properties that provide favourable leasing covenants including long leases and blue-chip tenants,” added Mr Hemmingway.
Already this financial year, the portfolio has benefitted from a $6.2million valuation uplift.
The fund will remain open until 10 December 2021 to receive investment for a capital raise target of $34 million.