- The assets, all hospitals, have a WALE of 12 years
- Two of the assets have come from Centuria's ADHF
- The third is a hospital currently under construction in Kew
A new institutional healthcare partnership between Centuria and an investment vehicle sponsored by Morgan Stanley Real Estate Investing – the private real estate investment management arm of US-based Morgan Stanley – has been announced today.
To be called the Centuria Prime Partnership (CPP), the joint venture is seeded with three healthcare real estate assets that are collectively worth $210 million. 90% of CPP will consist of an investment from Morgan Stanley, with the balance Centuria.
The assets are supported by strong tenants on long term leases, with a weighted average lease expiry (WALE) of 12 years and 99% occupancy.
All three assets focus on solutions that deliver better patient care, with the joint venture illustrating Centuria’s diverse range of capital sources.
The three hospitals
The seed assets include two Queensland private hospitals secured from Centuria’s Australian Diversified Health Fund (ADHF).
The Westside Private Hospital in Brisbane, with a valuation of $96 million, has four theatres, an infusion chemotherapy clinic along with a 63-room medihotel and seven overnight beds. Currently the facility is operated by Monstserrat Day Hospitals, which is part of ASX-related Healius Limited.
Valued at $39 million, Mater Private Hospital in Townsville houses four theatres, 34-beds and includes both the Icon Cancer Centre and Queensland Xray.
The third asset is the $75 million Adeney Private Hospital in Kew, which has recently received development approval, with construction expected to commence in June 2022.
Set to provide four theatres, infusion chemotherapy clinic and 30-beds. Medibank and a group of doctors will be operating the hospital under a joint venture.
Centuria will act as the trust administrator, property manager and development manager.
“We are very pleased to announce our partnership with MSREI, which provides another opportunity to utilise our strong in-house healthcare real estate capabilities and further broadens our access to additional capital sources,” said Centuria Joint CEO, Jason Huljich.
“Since 2019, Centuria has significantly grown its healthcare AUM to approximately $1.7billion3by focusing on healthcare real estate models of care that are cost-effective and deliver better patient care for our high-quality operational partners,” added Andrew Hemming, managing director of Centuria Healthcare.”
“We will continue to focus on the acquisition of institutional-grade properties as well as developing out our $900 million healthcare pipeline.”
Centuria has identified further healthcare assets it intends to acquire for the fund.
