Tom Patrick
Head of Healthcare Property, Partner
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Fund Overview
The Barwon Healthcare Property Fund is an open-ended fund which invests nationally in healthcare real estate. The Fund’s assets include a variety of primary and secondary care facilities, tenanted by some of Australia’s largest private medical providers, in addition to State Government tenants.
The Fund targets acquisitions that provide wholesale investors with target quarterly distributions of approximately 5% – 6% p.a. and the potential for capital growth, targeting a total return of 8% – 10% p.a. net of fees.
Investment Strategy
The Fund holds a portfolio of 50+ healthcare properties including:
- Hospitals
- Private medical specialists facilities
- Day surgeries
- Medical centres
- Diagnostic and laboratory facilities
- Specialist disability accommodation
- Ancillary healthcare assets
The properties are predominately located in major metropolitan and regional cities across Australia.
Key Features of the Fund
Australia’s growing and aging population driving strong demand for healthcare services
Attractive yields of 5%-6% p.a. paid quarterly
Defensive sector with demand for healthcare largely unaffected by the economic cycle
Long WALEs with inflation-hedged income streams
Low correlation with other property sectors
Strong total returns for the property asset class with lower volatility
High quality tenants due to sound sector fundamentals and significant Government funding
Specialised and expensive fit outs and equipment making tenants sticky
Advances in methods of care and technology driving demand for new and more specialised care facilities
Unit Price and Performance
As at 30 June 2024
| Fund Name | Unit Price (CUM) | Income Return ITD p.a. | Capital Return ITD p.a. | Total Return ITD p.a. | Fund Inception |
|---|---|---|---|---|---|
| Barwon Healthcare Property Fund | $1.1189 | 6.15% | 0.74% | 6.88% | 10-Oct-14 |
Disclaimer
Research Rating
The Zenith Investment Partners (ABN 27 103 132 672, AFS License 226872) (“Zenith”) rating (assigned December 2022) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer documents before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charger the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/our-solutions/investment-research/fund-research-regulatory-guidelines/.
Investment Team
Selection of Fund Properties
Shenton Park, Western Australia
- Description: Allied Health Centre
- Anchor Tenant: Western Kids Health
- Purchase Date: August 2023
Adelaide Airport, South Australia
- Description: Pathology Laboratory
- NLA: 2,719 sq.m.
- Anchor Tenant: Clinical Labs
- Purchase Date: November 2018
Butler, Western Australia
- Description:Mental and Community Health Centre
- NLA: 715 sq.m.
- Anchor Tenant: WA Health
- Purchase Date: May 2022
Salisbury, South Australia
- Description: Specialist Disability Apartments
- Anchor Tenant: SDA Pty Ltd
- Purchase Date: April 2021
Wollongong, New South Wales
- Description: Diagnostic Imaging & Occupational Health
- NLA: 1,184 sq.m.
- Anchor Tenant: Sonic Healthcare
- Purchase Date: July 2018
Hervey Bay, Queensland
- Description: Radiation Oncology Centre
- NLA: 593sq.m.
- Anchor Tenant: GenesisCare
- Purchase Date: January 2019
Logan, Queensland
- Description: Mental and Community Health Centre
- NLA: 5,328 sq.m.
- Anchor Tenant: QLD Health
- Purchase Date: July 2016
Croydon, Victoria
- Description: Medical Centre
- NLA: 1,246 sq.m.
- Anchor Tenant: Partnered Health
- Purchase Date: October 2015
Woodville, South Australia
- Description: Mental Health Centre
- NLA: 2,009 sq.m.
- Anchor Tenant: SA Health
- Purchase Date: August 2018
Barwon seeks to be Australia's leading manager in healthcare real estate with respect to its ESG program.
Environmental
The Barwon Healthcare Property Fund is conscious of its carbon footprint, and is actively taking steps to reduce it, including but not limited to:
- Targeting 4+ Greenstar design building where possible
- Adopting technologies across its operation to reduce emissions and drive efficiency
Social
The Barwon Healthcare Property Fund is uniquely positioned to enact meaningful social benefit from its investment activities. The Fund has made significant commitments to a range of social initiatives, including building the first dedicated adolescent mental health services in Queensland. With its partners, Barwon has invested extensively in mental health and cancer care facilities across Australia.
Governance
Barwon seeks to engage with high quality stakeholders who have reputations in business and in the wider community founded on high ethical and moral standards. Barwon’s governance framework reflects our duty to act in our clients’ best interests at all times and in compliance with all relevant legal and regulatory requirements. Barwon maintains an ESG Committee which provides guidance to the Barwon investment verticals.
News & Insights
Barwon Investment Partners is pleased to release its latest white paper: Investing in the Specialist Disability Accommodation Sector. The paper offers an in-depth analysis of the Specialist Disability Accommodation market, covering key aspects such as investment characteristics, supply and demand trends, risk and return profiles and future growth prospects. Through this exploration, it aims to equip […]
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“We aim to be considered the ‘safe pair of hands’ when investors look to invest in Specialist Disability Accommodation,” says Barwon’s Joss Engebretsen. Building a fund in an emerging asset class fundamentally relies on getting out from under the desk, understanding how the sector works from the bottom up and building the right relationships according […]
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The Inside Adviser – Staff Writer As Australian healthcare expenditure continues to rise and investors move deeper into the sector, healthcare property is well placed to continue its outperformance of other commercial property sub-sectors. Few investors would be unaware of the woes of the commercial property sector, with office and retail real estate valuations continuing […]
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Tom Patrick, Head of Healthcare Property at Barwon Investment Partners, recently discussed the drivers behind an increasing demand in the healthcare property sector and highlighted a potential for growth due to demographic and technological shift on Ausbiz. Click the link below to watch the full interview Media Enquiries Mekala Shanker Marketing & Communications Manager […]
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We are pleased to release our latest investment White Paper: The Outlook for Healthcare Property. Tom Patrick, Head of Healthcare Property at Barwon Investment Partners, comments, “We view the sector’s strong fundamentals, combined with macro-economic tailwinds, leading to sustained and increased demand for healthcare property over the medium term. “As we enter the next property cycle, […]
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The Barwon Disability Accommodation Fund (Fund) is proud to announce the successful settlement of two properties in Western Australia and Queensland. These settlements are in line with the Fund’s commitment to providing high-quality Specialist Disability Accommodation (SDA) across Australia. With a total investment of approximately $10m, these acquisitions bring the Fund’s portfolio to $82.43m including […]
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Barwon Investment Partners (Barwon) is proud to announce its collaboration with Avive Health to unveil a ground-breaking 63-bed private hospital facility in Brisbane. This facility aims to establish a new benchmark in private mental healthcare, reflecting Barwon’s commitment to transforming healthcare infrastructure. Avive Clinic Brisbane, the result of this collaborative effort, is a visionary project […]
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Barwon Investment Partners (Barwon) is proud to have been a part of the momentous occasion of the Eastwood Private Hospital official sod-turning event, marking the commencement of construction for an innovative healthcare facility. This project, valued at $90 million, is the latest development within the Barwon Institutional Healthcare Property Fund (Fund) stable. The Eastwood Private […]
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Tom Patrick, Head of Healthcare Property at Barwon Investment Partners, and Srimathi Iyenger, Portfolio Manager, sat down together to discuss the Barwon Institutional Healthcare Property Fund’s activity during the June to September 2023 quarter.
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In this video, Tom Patrick, Partner and Head of Healthcare Property, and Joss Engebretsen, Portfolio Manager discuss the Barwon Disability Accommodation Fund’s performance over the September quarter.
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Barwon will be hosting a webinar on Thursday, 21 September at 11am (AEST) on the development and outlook for the Specialist Disability Accommodation (SDA) sector with Joss Engebretsen, Portfolio Manager for the Barwon Disability Accommodation Fund. Joss will be joined by Laila Burnet, National Director – Health Aged Care & Seniors Living at M3 Property, and James Brennan, […]
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Barwon Investment Partners (Barwon), a leading alternative fund manager, is pleased to announce the successful settlement of three new assets totalling $31.25m gross asset value within the Barwon Disability Accommodation Fund’s (Fund) portfolio. All three operating properties were acquired with fixed rent head leases in place and collectively will provide accommodation for 41 individuals with […]
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