Barwon Investment Partners is pleased to announce the successful acquisition of two premier healthcare assets with a third asset purchase in final due diligence. The acquisitions further solidify Barwon’s position as a leading investor in the healthcare property sector and demonstrate the Fund’s commitment to expanding its portfolio with high-quality, income-generating assets.
The Barwon Institutional Healthcare Property Fund (Fund, BIHPF) has acquired Mons Road Medical Centre in Westmead, NSW, for circa $38 million. The medical centre boasts a strategic location within the tightly held Westmead health precinct, adjacent to Ramsay’s Westmead Private Hospital. Anchored by Castlereagh Imaging, Sonic Healthcare’s renowned diagnostic imaging business, the medical centre also houses IVF Australia and other prominent medical consulting specialists with more than 85% of the property’s income linked to CPI. Spanning an impressive 2,898 square meters of Net Lettable Area (NLA) across four levels, the property includes 60 car parks, providing convenient accessibility to patients and medical practitioners alike.
Tom Patrick, Head of Healthcare Property at Barwon, expressed his enthusiasm for the recent acquisitions, stating, “We are delighted to welcome Mons Road Medical Centre to our growing portfolio of healthcare properties. This acquisition represents an exceptional opportunity to build on our existing exposure to Sonic Healthcare, a leader in the healthcare industry, while establishing our presence within the highly sought-after Westmead health precinct.”
The Fund has also acquired Neta Care HQ, a state-of-the-art medical centre in Brookwater, QLD. The newly refurbished property was purchased for $14 million and is 100% tenanted by Neta Care, a prominent disability care provider offering a comprehensive range of services, including general practice, allied health services and disability care.
“We are pleased to partner with Neta Care, a leading holistic disability care provider, and invest in a property that plays a crucial role in meeting the healthcare needs of the local community,” said Tom Patrick. “It fantastic to own an asset located in the favourable south-west growth area of Brisbane where further healthcare services are expected to be required over the medium-to-long term”.
The Brookwater medical centre’s attractive WALE of 9.3 years further enhances the investment’s stability, providing long-term income certainty for the Fund and its investors. The newly refurbished facility is equipped with state-of-the-art amenities, ensuring the highest standards of care and service delivery for National Disability Insurance Scheme recipients.
Additionally, Barwon continues its strategic expansion in Brisbane, with a third asset in the final stages of due diligence, contracted to acquire 87 Ipswich Road, Buranda, QLD. This asset, which includes two completed day hospitals, has been secured for a total consideration of $72 million and is currently leased to Queensland Eye Institute and another esteemed healthcare tenant.
The addition of these day hospitals to Barwon’s portfolio further cements the Fund’s position as a prominent player in the healthcare real estate market. This asset has a strategic alignment to the Fund’s recent acquisition of PA Health Connect. Located at 240 Ipswich Road, Buranda, QLD, it is directly connected to the Princess Alexandra Hospital, Queensland’s second largest hospital and one of Australia’s leading tertiary healthcare centres. The acquisitions represent a significant milestone in BIHPF’s commitment to investing in high-quality healthcare assets that deliver attractive returns and support the delivery of essential healthcare services.
Pleasingly, this takes the portfolio value of the Fund to over $1.4 billion. To date the Fund has delivered 10.75%[1] p.a. total return since inception in 2016. Barwon plans to continue to raise additional capital for the Fund with a strategic capital raise of over $300 million in the next 12 months to support its continued growth, pipeline expansion and diversification.
The Fund currently comprises 29 healthcare properties valued at over $1.4 billion and continues to receive strong support from institutional investors. Barwon continues to actively invest in all sectors of healthcare real estate.
Should you wish to find out more on how to invest in the Fund, please contact Kate Hayward on kate.hayward@barwon.net.au.
ENDS
[1] As at 30 June 2023
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Barwon Investment Partners 0416 115 761 |
Nina Dunn
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