Barwon Investment Partners (“Barwon”) is pleased to announce the successful completion of Newmarket Medical Centre, the third acquisition made by the Barwon Healthcare Property Fund. The Newmarket Medical Centre is a purpose built medical centre, located within 5 km of the Brisbane CBD on an excellent corner site of a major arterial route. The facility is a multi-let to primary and allied care providers.
The Fund’s portfolio now includes three primary care facilities located in Queensland and Victoria with a strong tenancy profile and a WALE in excess of 5 years.
The Fund, which is unlisted and open to wholesale investors, plans to acquire over $100 million in healthcare real estate assets within Australia over the next 2 years. The Fund’s strategy is focused on providing investors with strong total returns underpinned by an attractive semi-annual distribution yield in the range of 7%-8%. Investments will encompass healthcare properties including medical centres, diagnostic and laboratory facilities, private hospitals and ancillary healthcare property assets.
Barwon Investment Partners’ Director, Rob Morrison, comments:
“With current volatility in financial markets, we are seeing more interest in unlisted healthcare property as investor seek defensive investments offering a combination of growth and high recurring yields. We continue to see great opportunities in the healthcare property sector in Australia, with healthcare real estate having outperformed the direct property market over the last 8 years. In 2016, Healthcare Property returned 18% pa compared to 11.1% pa. (IPD Research) Healthcare spend constitutes nearly 10% of Australia’s GDP, however the sector is often over looked by institutional real estate participants.
Our team has an in-depth knowledge of the healthcare sector and funds management. We continue to acquire quality assets that meet stringent due diligence hurdles. We are also seeking to partner with key healthcare tenants and operators who require specialist real estate capital to support their expansion.”
We are pleased to have secured another investment for the Fund and we are actively assessing new opportunities for our investors.