Centuria Capital Group has launched an unlisted, open-ended healthcare fund with six seed and pipeline assets worth $133m that benefit from 100% occupancy and a portfolio WALE of 6.7 years . The fund, known as Centuria Healthcare Property Fund (CHPF), has a starting distribution yield of 5.75% .
Centuria Healthcare will seek to raise c.$97m to launch the Fund with a minimum entry investment of $10,000. The fund will provide monthly distributions and provide limited quarterly withdrawal arrangements. CHPF’s specialised investment criteria is to secure assets providing cost-effective models of care, with a particular focus on short-stay hospitals, day hospitals and medical centres offering complementary tenancies that create healthcare ecosystems.
Jason Huljich, Centuria Joint CEO, said “Centuria has started FY21 in a strong position, having already acquired c.$700m of real estate. The launch of this healthcare fund adds to our momentum. We believe healthcare is an attractive asset class, characterised by long leases, high occupancy rates and growing demand for its services.
“We’ve had strong success with our other unlisted, open-ended fund having launched the Centuria Diversified Property Fund (CDPF) in 2017. This new Fund delivers further opportunities to our deep distribution network and we expect CHPF to be an attractive opportunity for the major platforms, advisors and individual investors.”
In September 2019, Centuria confirmed that they had received 2 institutional mandates from AXA IM and Grosvenor of $500m for their Australian Diversified Healthcare Fund (ADHF). The fund has grown to $700m and contains 45 assets across 10 unlisted funds. Unlike the ADHF Fund, the new Healthcare fund will focus on retail investors and will likely co-invest or participate alongside the ADHF.
Andrew Hemming, Centuria Healthcare Managing Director, said, “Healthcare assets have remained resilient throughout the current COVID-19 period, underpinned by constant demand. More broadly, healthcare is a growing real estate sector due to Australia’s ageing population and rise of chronic diseases, such as diabetes.
“The strong performance of this asset class, coupled with its relatively low volatility compared to other property asset classes, has driven significant investor demand . We are meeting this demand appetite with the launch of CHPF. We intentionally selected these assets, not only because of their strong property attributes, but they are tenanted by trusted, well-performing healthcare operators with strong covenants.”
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