Centuria Makes $50m Life Sciences Play


Centuria Healthcare Property Fund has spent more than $50 million on a medical manufacturing laboratory in Victoria.

The Mt Waverley-based In Vitro Diagnostic Manufacturing Laboratory marks the inclusion of life sciences laboratories in the $413.8 million portfolio as a new asset sub-class, on a 4.8 per cent yield.

The fund also bought up $7.3 million in dementia care residences in Sydney and spent $13 million on a medical centre development in South Australia.

Centuria Healthcare managing director Andrew Hemming, who will be speak at The Urban Developer’s one-day virtual summit on the healthcare property industry, said the acquisitions had diversified the unlisted, open-ended healthcare real estate fund’s geographic spread and tenant profile.

“The development and manufacturing of in-vitro diagnostics will continue to experience tremendous growth, accelerated by the pandemic due to the volume of health screening required from nasal/saliva swabs to blood tests. 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,” Hemming said.

“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.”

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The $51-million Mt Waverley acquisition is a repositioning of an existing facility to provide specialist laboratories and office accommodation. About 90 per cent of the property will be leased to Paragon Care on a 15-year term.

The dementia care assets at St Ives in Sydney are two fund-through developments a single-storey house, and one double-level house.

Centuria Healthcare announced its WEST Medical Hub in the Commercial & General masterplanned community at West Lakes in South Australia in 2020 as a call option, and the $13-million property was due to settle in December 2021.

“Within the past 12 months CHPF has increased its portfolio by 198 per cent, 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.

The fund has experienced a $6.2-million valuation uplift since the beginning of the financial year. It has recently opened a capital raising campaign with a target of $34 million.

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