- Medical asset sales hit a record high in 2020
- 2021 has so far seen $471M in sales for assets valued above $5M
- Dexus, Centuria and HomeCo among the major buyers, m3property research says
Demand for medical assets continues to grow, with confirmation this sector is to be among the fastest-growing asset classes over the coming years, research conducted by m3property has found.
Laila Burnet, m3property national director, said medical asset sales activity hit a high in 2020 and so far in 2021 have remained strong, with about $471 million in sales already for assets valued over $5 million.
“Medical properties are a reliable and fast-growing asset with national health services revenue forecast to grow from $160 billion over 2021 to $185 billion in 2026,” she said.
Ms Burnet signalled out Australian Unity, Dexus, HomeCo, Elanor Investors, Centuria and Centennial Property Group as among the most active buyers in the arena over the past two years.
As of December 2020, Centuria Healthcare had 52 healthcare properties totalling close to $1 billion in assets under management, while the Dexus Healthcare Property Fund has also enjoyed rapid growth following the completion of two off-market acquisitions in Brisbane, which will comprise $1.2 billion of properties upon completion.
Additionally, HomeCo acquired the Health Hub in Morayfield, north of Brisbane, for $120 million and eight of GenssisiCare’s properties across Western Australia, Victoria and Queensland.
“There has been a continued trend of firming market yields across health assets during recent years which now range between 4% and 6% for investment grade assets,” explained Ms Burnet.
“This is due to strong competition for healthcare assets from a growing pool of investors, Australia’s ageing demographics, low interest rates, relatively long lease terms of assets (as well as strong and consistent leasing conditions) and the emergence of new fund managers.”
Laila Burnet, m3property
