HealthCo Healthcare & Wellness REIT today announces a strategic partnership with Mater, one of Queensland’s largest not-for-profit private hospital operators and has confirmed the acquisition of two other health & wellness assets.
As part of the announcement, HealthCo confirmed
- Mater has entered into a 10-year lease with further options as anchor tenant for 4,150sqm at HealthCo’s Springfield Health Hub.
- Mater will also acquire a 20% interest in the asset.
- This tenancy completes the successful redevelopment of Springfield Health Hub with occupancy subsequently increasing to 99%.
- Mater and HealthCo to explore additional healthcare services initiatives and development opportunities.
HCW Fund Manager, Sam Morris said: “We are pleased to announce an exciting new strategic partnership with Mater, beginning with the anchor tenancy at our Springfield Health Hub which complements their existing and expanding hospital operations in Springfield. The lease completes the successful redevelopment of HealthCo Springfield into a high-quality health hub in one of Australia’s fastest growing catchments. Following the finalisation of the lease at Springfield, we are excited to explore additional opportunities for joint healthcare service initiatives and developments that align with our strategic ambitions.
HealthCo has also agreed to acquire Vitality Village Health Hub on the Sunshine Coast, Queensland. The recently completed health hub is prominently located in the heart of Sunshine Coast Health & Medical Precinct and adjacent to the Sunshine Coast Public and Private hospitals. HealthCo will pay $28.9m for the asset which was secured on a 6.5% fully-let initial yield. The asset is 100% occupied and comprises high quality healthcare and wellness tenants with high exposure to CPI-linked leases.
The acquisition of Vitality Village further increases the scale and diversification of HCW’s portfolio. This newly developed health hub is strategically located in a core healthcare precinct, where the catchment will benefit from ongoing significant population growth and infrastructure investment.
HealthCo also intends to exercise its call option to acquire HMC Capital’s interest in Camden Stage 1 “The George” Private Hospital for $32.7m. The acquisition price represents a 5% discount to the independent valuation as at September 2022 and is expected to settle in November 2022. Stage 1 of the development is now significantly de-risked with the majority of works to be completed by the end of CY22 and practical completion by February 2023. HealthCo is continuing to progress discussions with potential anchor tenants for stages 2 & 3 and capital partners.
HCW Chair, Joseph Carrozzi said: “We are pleased to announce acquisitions which increase the quality, scale and diversification of the portfolio. These transactions as a package demonstrate management’s ability to source attractive acquisitions for HealthCo in the current inflationary environment.”
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