Centuria To Sell Healthcare Assets

29 April 2021

Healthcare investment fund Centuria Healthcare is set to divest five medical centers which are expected to generate in excess of $40m.

Two assets are being sold via CBRE and include a 1,608sqm Medical Centre at 87-89 Langtree Avenue in Mildura, Victoria, and a 1,614sqm Super Medical Centre at 2 Clarkshill Road in Secret Harbour, Western Australia.

Both properties are anchored by major GP practices with strong track records in their respective locations. The Mildura asset features a passing annual income of $363,778, while the Secret Harbour facility offers a return of $556,479 per annum.

Vijitha Yogavaran, Centuria Healthcare’s Fund Manager, said; “We are pleased to offer these two properties to the market after actively managing them for over five-years. The properties are underpinned by a long of 7.3-years and high-occupancy.”

The assets were acquired by Centuria Healthcare Direct Medical Fund No.1, an unlisted property fund that has invested in a portfolio of primary care based medical centres, specialist centres and small private hospitals in locations that have demographics supportive of an increasing demand for healthcare. The Fund holds assets worth $139.1 million, with a 4.6-year WALE.

Three other similar assets in Queensland are also being marketed through Colliers.

The Fund holds a further 9 assets and is due to be wound up in November 2021. Centuria are reviewing the portfolio and will consider how to deal with their larger assets over the coming months.

CBRE’s WA Metropolitan Investments’ Derek Barlow and its Healthcare & Social Infrastructure team of Josh Twelftree, Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto have been appointed to market the properties.

Mr Twelftree said; “With a number of traditional ‘core’ investors now considering whether to further diversify their portfolios with healthcare and social infrastructure, nationally, these properties present one of the first major opportunities of the year to achieve this at scale.”

Mr Twelftree added; “Long-term prospects for healthcare investments are incredibly positive, with changing demographics – including an aging population – long supporting the growth of the asset class.”

Mr Peluso added that; “The launch of these campaigns is timely, given some of the recent results we’ve seen in the $5,000,000 plus market, Australia-wide – there appears to be no upper limit for private investors, syndicates and institutional groups that are willing to outlay substantial capital for well-located medical investments with strong covenants or development potential.”

The CBRE EOI campaign closes 27th May 4pm.