Centuria Capital Group has rounded off the 2021 calendar year with a raft of healthcare real estate acquisitions, across both sides of the Tasman, totalling, c.$466million throughout the past two months.
Among the key transactions is a portfolio of 38 geographically dispersed New Zealand aged care properties for NZ$291million (c.A$276million), secured on a 30-year sale and leaseback triple-net lease agreements providing 100% occupancy. The assets will be operated by leading New Zealand provider, Heritage Lifecare.
Approximately 36% of the NZ 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 c.$415 million.
The remaining 64% of the NZ portfolio, including 25 assets, will be owned by the new unlisted Centuria New Zealand Healthcare Property Fund (CNZHPF).
Andrew Hemming, Centuria Health’s Managing Director said “We are expanding the geographical diversification of CHPF with the fund’s first foray into the New Zealand healthcare real estate market. We believe demand for aged care real estate within New Zealand will continue to increase due to the undersupply of existing facilities and an increasing ageing population.”
CHPF also recently secured the Varsity Lakes Day Hospital for $75.7million. The modern, purpose-built facility, located at 2 Lake Street, Varsity Lakes QLD, is anchored by Queensland Health, providing a 6.6-year WALE and 100% occupancy. Facilities include six digitally integrated operating theatres, 24 consulting suites, physiotherapy, gym facilities, retail tenancies and a diagnostic imaging tenancy housing MRI, CT and X-ray.
Another key acquisition is $38million site in Sydney’s eastern suburb of Alexandria, which was secured for potential future development of a significant healthcare property.
Mr Hemming continued, “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 Varsity Lakes acquisition provides our CHPF investors with an immediate revenue stream while the Alexandria site acquisition presents an opportunity to unlock further value through development.”
Jason Huljich, Centuria Group Joint CEO, continued, “These acquisitions provide unique opportunities to secure high-quality assets, further expanding Centuria’s healthcare platform across both Australia and New Zealand. We have continuously grown our healthcare portfolio since 2019 alongside our investments in office and industrial, and more recently, daily needs retail, large format retail and agriculture.”