SYDNEY: Centuria Capital Group (ASX: CNI) has established a new institutional healthcare partnership through a joint venture (JV) with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI), to be called the Centuria Prime Partnership (CPP).
CPP is seeded with three healthcare real estate assets collectively worth $210 million. The assets are supported by strong tenant covenants and high-quality operators on long lease terms, providing a portfolio Weighted Average Lease Expiry (WALE) of 12 years1 and 99% occupancy.
Further assets have been identified by Centuria and it is intended additional healthcare assets will be acquired by CPP.
Centuria will act as CPP’s Trust Administrator, Property Manager and Development Manager.
Jason Huljich, Centuria Joint CEO said, “We are very pleased to announce our partnership with MSREI, which provides another opportunity to utilise our strong in-house healthcare real estate capabilities and further broadens our access to additional capital sources.”
Andrew Hemming, Centuria Healthcare Managing Director, added, “Since 2019, Centuria has significantly grown its healthcare AUM to approximately $1.7billion3 by focusing on healthcare real estate models of care that are cost-effective and deliver better patient care for our high-quality operational partners. We will continue to focus on the acquisition of institutional-grade properties as well as developing out our $900 million healthcare pipeline.”
CPP’s seed assets include the $75million2 Adeney Private Hospital, Kew VIC, which will provide four theatres, an infusion chemotherapy clinic and 30-beds. The asset recently received development approval and construction is expected to commence in June 2022.4 It will be operated by a JV between doctors and private health insurer, Medibank.
The $96million Westside Private Hospital, Brisbane QLD provides four theatres, an infusion chemotherapy clinic, seven overnight beds and a 63-room medihotel. It is operated by Montserrat Day Hospitals, part of ASX-listed Healius Limited.
The $39million Mater Private Hospital, Townsville QLD, provides four theatres, 34-beds, and includes the Icon Cancer Centre and Queensland Xray.
Two of the assets were secured from Centuria’s Australian Diversified Healthcare Fund (ADHF) mandate.
CPP comprises a 90% investment from MSREI and 10% from Centuria.
