The Property Advisory (TPA) have entered the country’s healthcare funds management business in a major way, acquiring the the Greensborough Medical Centre and Day Hospital via a competitive public sales process – outperforming longstanding name stays in the institutional medical investment market.
The Greensborough Medical Centre and Day Hospital was sold via Australian Unity’s $3.4 billion Healthcare Property Trust with the public sales campaign led by CBRE’s Australian Healthcare and Social Infrastructure business of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat with the business one of the few to successfully transact a major healthcare investment in 2025.
The Greensborough Medical Centre and Day Hospital features a head lease to ASX listed Healius Limited until 2033 with critical social infrastructure tenancies including GP (For Health), Day Surgery (Adora Fertility) and Radiology (Lumus Radiology).
TPA Managing Directors’ Lucas Shannon and Hugh O’Brien said the transaction reflects TPA’s disciplined and thematic approach to healthcare real estate, a sector the group has been closely monitoring for some time.
“In our view, the healthcare sector became overheated in the lead up to and during the COVID period when rates were at historic lows. The current higher interest rate environment has since created appealing opportunities for long-term investors, and this acquisition is a great example of that.”
“The underlying thematics around both Australia’s ageing population and strong population growth are highly supportive of well-established healthcare property assets. The Greensborough Medical Centre and Day Hospital is a quality, recently refurbished facility with an eight-year WALE to a single head tenant and strong location fundamentals, which makes it an excellent addition to our portfolio.”
Both TPA directors acknowledged the role of their transaction partners and thank Australian Unity and CBRE for their collaborative efforts in successfully bringing this deal to completion.
Viji Yogavaran, Fund Manager, Australian Unity Healthcare Property Trust said the divestment of Greensborough Medical Centre is in line with the Trust’s active portfolio management and focus on capital management initiatives.
The proceeds from the sale will initially be used to reduce debt and ultimately, to fund brownfield and greenfield developments across the eastern seaboard such as the $67 million Infinite Care Knox, Aged Care development, in Knoxfield, Victoria.
CBRE’s Marcello Caspani-Muto and Sandro Peluso said “The healthcare investment market has undoubtedly faced headwinds over the past 24 months. However, these challenges have not been a reflection of tenant viability or asset performance, but rather the result of a constrained capital environment. Some institutional owners have been compelled to divest assets due to redemption pressures stemming from the country’s rapidly changing interest rate environment, while return hurdles for many funds have become increasingly difficult to meet.
As a result, we have seen what we believe to be a temporary period of yield softening, with signs already emerging of compression returning across the sector. In many ways, this transaction represents a ‘sliding doors’ moment – a highly positive outcome for both vendor and purchaser. It is also one of the few notable healthcare transactions of scale completed in recent years, and we are proud to have played a role in achieving this result.”
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