Barwon Healthcare Property Fund Update – June 2022

August 8, 2022 / Healthcare Property

Tom: Hello and welcome to our latest Healthcare property update from Barwon Investment Partners.

My name is Tom Patrick, and I am head of Healthcare Property at Barwon Investment Partners.

Today I am joined by portfolio managers Srimathi Iyengar and Sophie Monsour. Thank you for joining today ladies. Now, you’ve both been working in the Healthcare Industry for some time now so I thought it would be great for our investors to hear from you both and get you to give an update on what’s been happening across the Barwon Institutional Healthcare Property Fund and the Barwon Healthcare Property Fund.

Sri, let’s start with you. Can you please provide an update on Barwon’s Institutional Healthcare Property Fund and talk us through the Fund’s latest acquisitions?

Sri: Hi Tom, well it’s been an extremely busy quarter with lots of activity taking place. You would be aware that the Development Application has been approved for the new Maroochy Private Hospital Development and pleasingly we had the ground breaking ceremony in May. This event earmarked the beginning of construction and we are excited by the fact that, the building is already close to being fully tenanted.

In a few days, BIHPF will also be completing the acquisition of a major hospital car park and healthcare asset in Buranda, Queensland, also known as PA Central.

Tom: So let’s talk a bit more about the hospital car park. Can you tell our viewers more about WHY this asset is such a strategic purchase for the Fund?

Sri: Yes absolutely. As you know Tom, when we look to acquire assets, we don’t just look at their current value but really take a deep dive into the future potential of these assets by way of development. The PA Central asset is directly connected to the Princess Alexandra Hospital, Queensland’s second largest hospital and one of Australia’s leading tertiary healthcare centres. What excites us is the favourable district centre zoning which could allow for a development of up to 15 storeys.

Tom: Fantastic. Yes we do love to purchase assets which can be further developed and benefit investors and local communities. Before we finish with BIHPF, let’s quickly touch on the exciting recent news of BIHPF being the first Australian healthcare fund to be certified with a Green star rating. Can you talk investors through what this rating means and why it is so important?

Sri: Yes we have just had some fantastic news that BIHPF has been awarded a 3 star green star rating for it’s portfolio of assets.

We are very pleased with this certification. As you know, ESG considerations form an integral part of our acquisition due diligence process and our day-to-day asset management activities. We are committed to building upon our leading ESG position within the healthcare property industry and it is rewarding for the healthcare property team, our tenants, and investors to see our innovative and sustainable properties recognised with this 3 Star Green Star rating

Tom: Great news Sri. Thank you for the update.

Ok let’s move on to the Barwon Healthcare Property Fund, which has had an extremely busy quarter with many purchases made. Sophie, thanks for joining us. Can you please walk our investors through the latest acquisitions for BHPF?

Sophie: Hi Tom, great to be here. As we look to wrap up the financial year, looking back we have transacted on ~17 new acquisitions. This includes ~$45m of acquisitions in this quarter alone for 4 different properties. These properties are geographically diversified across Western Australia and Queensland and vary in terms of healthcare subsector.

Tom: We like to keep you and the team busy searching for new properties don’t we.

Ok let’s hear more about the Queensland acquisitions and what’s been bought.

Sophie: So we continue to grow our exposure to day hospital assets held in BHPF, with the two Queensland acquisitions located at St Andrew’s Place, one of Brisbane’s premier healthcare precincts.

One acquisition was of the Eye Tech Day Surgery which is leased to Cura Group and the other acquisition was of the hospital car park at St Andrew’s Place.

Tom: Thanks Sophie. Let’s hear about the other acquisitions made in the Fund. I know you and the team have been very active across assets in Western Australia. Can you tell our investors more about these acquisitions.

Sophie: Yes, Tom as you said we have been extremely active in the WA Market.

One of the new acquisitions is located in Joondalup close to the Joondalup Health campus. This property is anchored by Linear Clinical Research who will operate a new clinical trials facility. As a sector, clinical trials has been experiencing major market growth and we are pleased to be introducing it into the portfolio.

We are also proud to be continuing to back the provisions of mental healthcare services via the acquisition of a community mental health facility in Butler. The asset subject to a 15-year lease to WA Health for treatment of adults with mental illness – so another great addition to the portfolio.

Tom: Some fantastic acquisitions made across both Barwon Healthcare Property Funds. Thank you Sri and Sophie for providing an update today. If you are interested to know more about any of these specific transactions mentioned today, please do not hesitate to get in touch with myself, Sri or Sophie.

If you are interested in finding out how you can invest, please reach out to Barwon’s distribution team.

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