The Elanor Healthcare Real Estate Fund has acquired the 2 Civic Boulevard property in Rockingham, WA for $22.90 million, reflecting a 5.75% capitalisation rate.
This is the fourth acquisition for the Fund since its establishment in March 2020 and grows the value of the Fund’s portfolio to over $183 million.
Rockingham is a key growth corridor of the Perth metropolitan area. The property is a three level, multi-tenanted purpose-built medical facility with significant capital investment to provide radiation therapy for the treatment of cancer.
The property has 2,986 square metres of net lettable area and is fully leased to ICON Cancer Centre and Q-Scan Radiology, with a weighted average lease expiry of 7.1 years.
ENN Co-Head of Real Estate and EHREF Fund Manager, David Burgess, said: “The Elanor Healthcare Real Estate Fund delivers superior risk-adjusted returns by investing in commercial healthcare properties where tenants provide vital ‘out-of-public hospital’ services. The Fund generates a strong distribution yield of 7.4% p.a.
“The Fund’s strategy capitalises on the growing cost pressures on the healthcare system, which combined with advances in health technology, is driving the delivery of healthcare services to ‘out-of public hospital’ facilities such as lower-cost day surgeries and medical centres.
“2 Civic Boulevard further strengthens the Fund by increasing the portfolio’s WALE and diversifying the portfolio’s geography and tenant mix.”
ENN CEO, Glenn Willis, said: “We are pleased to have secured a further high investment quality healthcare real estate asset for our capital partners in the Fund. The healthcare real estate sector has proven to be resilient during COVID-19, and as such, we continue to experience strong investor demand for the Fund. We see the healthcare real estate sector as an area of significant growth potential for the Group.”
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