The Centuria Healthcare Property fund has purchased an in vitro diagnostic manufacturing laboratory in the Melbourne suburb of Mt Waverley for $51 million.
The unlisted fund plans to reposition the existing facility to provide specialist laboratories and office accommodation, with refurbishment works beginning in April 2022.
The property will be about 90% leased to ASX-listed Paragon Care for a 15-year term and about 3.7% leased to private construction company FIMMA, with a lease expiring in April 2025.
Centuria Healthcare Managing Director Andrew Hemming said the acquisition added the life science laboratories asset class to the fund’s portfolio.
“The development and manufacturing of in-vitro diagnostics will continue to experience tremendous growth, accelerated by the COVID-19 pandemic due to the volume of health screening required from nasal/saliva swabs to blood tests,” Hemming said.
“With a focus on diagnostics, we believe this is an area that will continue to be in high demand, requiring state-of-the-art facilities.
“The pandemic has also shone a spotlight on Australia’s developing healthcare sector. We are partnering with the country’s leading operators to provide healthcare facilities that meet the requirements of the community today and in the future.”
CBRE’s David Aiello and Sasan Misaghian represented the vendors in the deal, which is expected to close next month.
Healthcare assets grow to $414m
The deal comes as the Centuria Healthcare Property fund settled on $7.3 million worth of dementia care acquisitions in NSW.
The acquisitions were two fund-through developments in St Ives, Sydney, including a single-storey house providing accommodation for 10 dementia-afflicted residents and an onsite carer.
The fund also secured a $13 million medical centre development in Adelaide’s West Lakes.
The Adelaide acquisition was first announced with the WEST Medical Hub in November 2020 as a turnkey call option.
The property is positioned within Commercial & General’s masterplanned community and surrounded by 1,300 new residences and a new Uniting SA aged care facility.
The new additions grow the fund’s portfolio to 18 properties worth about $413.8 million, with 99.1% occupancy and an 11.8-year weighted average lease expiry.
“Within the past 12 months CHPF has increased its portfolio by 198%, largely driven by investor appetite for modern, high-quality healthcare properties that provide favourable leasing covenants including long leases and blue-chip tenants,” Hemming said.
Since the start of FY22, the fund has also secured three significant leasing transactions including a 20-year lease to Nexus Hospitals across about 2,800 sqm at Vermont South Medical Centre in Melbourne.
The fund also secured a 10-year lease to BGH Capital across 890 sqm at Forrest Family Practice in South Bunbury, WA, and two five-year lease extensions to I-MED Radiology and Sonic Healthcare across 700 sqm at Coffs Medical Centre in Coffs Harbour, NSW.
Centuria’s other funds have been busy in recent times, including Centuria Industrial REIT’s $129.4 million acquisition of a portfolio of four industrial properties across Sydney, Melbourne and Brisbane last week.
Centuria Capital subsidiary Primewest bought a shopping centre in Geraldton, WA from a Lendlease fund for $71.2 million last month, while Centuria Office REIT acquired two offices in Melbourne and Sydney for a combined $273.1 million in September.