Healthcare Property
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Fund Overview

The Barwon Healthcare 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 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

Unit Price and Performance

As at 31 March 2023

Fund NameNAV PriceIncome Return ITD p.a.Capital Return ITD p.a.Total Return ITD p.a.Fund Inception
Barwon Healthcare Property Fund1.30616.52%2.72%9.24%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

Tom Patrick

Tom Patrick

Head of Healthcare Property, Partner

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Tom Patrick

Tom Patrick

Head of Healthcare Property, Partner

Read More

Selection of Fund Properties

Woodville, South Australia

  • Description: Mental Health Centre
  • NLA: 2,009 sq.m.
  • Anchor Tenant: SA Health
  • Purchase Date: August 2018

Croydon, Victoria

  • Description: Medical Centre
  • NLA: 1,246 sq.m.
  • Anchor Tenant: Partnered Health
  • Purchase Date: October 2015

Logan, Queensland

  • Description: Mental and Community Health Centre
  • NLA: 5,328 sq.m.
  • Anchor Tenant: QLD Health
  • Purchase Date: July 2016

Hervey Bay, Queensland

  • Description: Radiation Oncology Centre
  • NLA: 593sq.m.
  • Anchor Tenant: GenesisCare
  • Purchase Date: January 2019

Adelaide Airport, South Australia

  • Description: Pathology Laboratory
  • NLA: 2,719 sq.m.
  • Anchor Tenant: Clinical Labs
  • Purchase Date: November 2018

Wollongong, New South Wales

  • Description: Diagnostic Imaging & Occupational Health
  • NLA: 1,184 sq.m.
  • Anchor Tenant: Sonic Healthcare
  • Purchase Date: July 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

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

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