The Australian Unity Healthcare Property Trust (HPT) has acquired property at 1 Bayberry Lane, Robina, Queensland, for $7.9 million and plans to commence a $20.5 million hospital development on the site.
HPT is an unlisted property trust that invests in healthcare-related property assets with a primary focus on delivering regular income for investors plus the opportunity for long-term capital growth.
The property is a 6,662sqm vacant lot, and has been approved as ‘medical’ under the Robina Central Planning Agreement. The site sits within the Robina Medical Precinct and is co-located with the Robina Public Hospital.
Development will occur over three stages, with the first being the construction of a new 90 bed sub-acute hospital, along with ancillary areas, delivery dock and associated parking at basement levels. Future stages are earmarked for a full surgical hospital.
Practical completion of Stage 1 is expected to be in 2016 and, once completed, the building will be leased to Healthe Care Australia Pty Ltd for 25 years. The initial passing yield for Stage 1 is 7.5 percent.
This is the fifth acquisition for HPT in the past 10 months, totalling $53.25 million. Each purchase has been funded from the HPT’s existing capital reserves.
The others include: a healthcare property in Kent Town, South Australia, in November 2014 for $11.1 million; a building in Townsville, Queensland, in October 2014 in partnership with Healthe Care, for conversion into a mental health hospital; Brisbane Waters Private Hospital on NSW’s Central Coast in July 2014 for $16.18 million; and a majority share of a medical centre in North Gosford, NSW, in March 2015 for $13.07 million.
Mr Chris Smith, head of healthcare and retirement funds at Australian Unity Real Estate Investment (AUREI), said that this is a prudent investment for HPT not only from an initial income yield point of view but also in terms of plans for future expansion.
“This acquisition is in line with a number of other large-scale brownfield developments that HPT has previously undertaken, with experience showing that these types of developments add value to the existing property portfolio and for investors.
“This development represents a rare opportunity for the private sector to co-locate, leverage off, and complement the growing Queensland Health presence in Robina Medical Precinct.”
Australian Unity Real Estate Investment is the property funds management business of Australian Unity Investments, part of the Australian Unity group, a national healthcare, financial services and retirement living organisation that has been operating for more than 170 years.
AUREI was established in 1998 and, through its unlisted property funds, owns and manages more than 50 properties in the healthcare, retail and commercial sectors across Australia. It has more than $1.8 billion in funds under management (as at 31 December 2014).
HPT, owns 32 hospitals, medical centres, and aged care facilities across Australia, and has more than $700 million in funds under management as at 30 April 2015.
For more information please contact:
Mr Chris Smith
Head of healthcare and retirement property funds
Direct line: 03 8682 4534
Mobile: 0418 379 763