Elanor Investors seed Health Care Fund18 March 2020
Elanor Investors Group announce the establishment of a new managed fund, the Elanor Healthcare Real Estate Fund with a target distribution yield of 7.25%.
With Australian healthcare expenditure growing at over 2.5 times GDP, prevailing healthcare sector cost structures are driving demand for more efficient healthcare service delivery models. Consequently, healthcare services are increasingly being delivered in lower cost day surgeries and medical centres/clinics.
The Fund will be established with the acquisition of two high quality healthcare properties with a combined asset value of $123.3 million, including;
- 55 Little Edward Street, Spring Hill, Brisbane – a multi-tenanted medical office and day surgery with a significant 484 bay carpark on a large 5,771 sqm site
- Pacific Private, Southport, Gold Coast – a multi-tenanted medical office and day surgery with 225 car spaces, located in an established health precinct, providing a broad range of clinical services.
Both properties are located in established health precincts and supported by strong anchor tenants. Cushman & Wakefield, brokered the deal off market.
Elanor plans to actively manage the fund’s assets to optimise the use of the properties, extract leasing efficiencies and undertake other value-add opportunities. Once a portfolio has been created, the Fund will examine opportunities to complete an IPO of the portfolio.
Elanor Investors Group CEO, Glenn Willis, said: “We are very positive about the growth prospects for the Australian healthcare real estate sector, particularly for modern medical centres and day surgeries. We look forward to applying our active asset management approach to the Fund’s two seed assets, and future healthcare real estate investments, to deliver superior risk adjusted returns for our investors.”