One of the multiple healthcare acquisitions made over the past two months by Centuria. Image: Supplied.
  • $466M in healthcare acquisitions by Centuria over the past two months
  • Majority (NZ$291M/A$276M) was made in New Zealand
  • Dexus has sold its interest in Sydney office properties

Centuria acquires $466M in healthcare properties

Centuria Capital Group (ASX: CNI) has announced the past two months acquisitions, which includes some $466 million in property, most of which was acquired in New Zealand, a hospital in Queensland, and a development in New South Wales.

The New Zealand acquisitions totalled NZ$291 million (approximately A$276 million) across 38 properties. Centuria said the properties were secured on 30 year sale and leaseback triple-net lease agreements providing 100% occupancy. The assets will be operated by Heritage Lifecare.

Approximately 36% of the New Zealand portfolio, including 13 assets, will be owned by the open-ended Australian-based Centuria Healthcare Property Fund (CHPF), which adds to its existing portfolio of 18 assets worth $415 million.

Heritage Portfolio_Waterlea Lifecare property
Healthcare acquisitions by Centuria. Image: Supplied.

The remaining 64% of the New Zealand portfolio, including 25 assets, will be owned by the new unlisted Centuria New Zealand Healthcare Property Fund (CNZHPF).

Centuria acquired Varsity Lakes Day Hospital in Queensland for $76 million, the property is anchored by Queensland health and has a 6.6 year WALE.

Centuria Healthcare Managing Director, Andrew Hemming, said “The Varsity Lakes Day Hospital is a rare high-quality facility on the Gold Coast, underpinned by strong tenant covenants and a resilient tenant profile. We foresee rising demand for these types of hospitals where the models of care promote better healthcare outcomes and are more cost-effective.”

The final acquisition was in Alexandria, New South Wales, a site which Centuria said was secured for potential future development of significant healthcare property.

Dexus sells Sydney interests

Dexus (ASX: DXS) has made exchanged contracts to sell interest on two New South Wales properties.

The company will sell its 50% interest in 309-321 Kent Street, Sydney. The address comprises two A-Grade office buildings in the Sydney CBD, and as at  13 December 2021, the property was 93% occupied with a weighted average lease expiry of 3.5 years.

The sale will realise proceeds of $401 million, with net sale proceeds initially being used to repay debt.

Dexus also announced that the Dexus Office Partnership in which Dexus has a 50% interest has exchanged contracts to sell its 100% interest in 140 & 150 George Street, Parramatta.

The sale will realise proceeds of $154 million, with net sale proceeds initially being used to repay debt.

150 George Street is a 21,964 square metre, A-Grade office building located in the Parramatta CBD. The property has become vacant in the past month following the known departure of the Commonwealth Bank of Australia.

The sale of the Parramatta property was the result of an unsolicited off-market offer, and settlement is expected in August 2022.

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The company has a portfolio with an average building age of 16 years, and an average NABERS energy rating of 4.8 stars