Northwest Expands $2.7bn Healthcare Portfolio in Adelaide


A New Zealand-listed healthcare trust has bought up the Tennyson Centre in Adelaide for $92.75 million.

Canadian-owned Northwest’s NZ$2.7-billion Vital Healthcare Property Trust has acquired the cancer treatment centre and adjoining land to add to its portfolio with development opportunity, following a NZ$140m equity raise.

The adjoining site will be held to expand existing services and develop complementary services.

Northwest chief executive Craig Mitchell said the Tennyson Centre acquisition aligned with Vital’s investment portfolio strategy, increasing exposure to ambulatory care and building relationships with allied health service providers.

“Our acquisition of The Tennyson Centre and the development land alongside speaks to the core expertise of NorthWest, and we look forward to working with its high-quality tenants to enable the delivery and expansion of world-class cancer care, which is a key area of focus for us,” Mitchell said.

“The Tennyson Centre and the opportunities offered by the adjacent development land will allow us to develop and improve the provision of healthcare services and education to South Australians.”

▲ Icon signed a 10-year lease following the Tennyson Centre acquisition.
▲ Icon signed a 10-year lease following the Tennyson Centre acquisition.

Icon Group chief executive Mark Middleton said the cancer care provider had signed a new 10-year lease following the acquisition.

“As Australia’s largest dedicated cancer care provider we are very pleased to have the Northwest managed Vital Healthcare Property Trust acquire the Tennyson Centre and adjacent development land,” Middleton said.

“In recognition that Tennyson has been acquired by the leading owner and manager of healthcare infrastructure in Australia, we have agreed to extend our lease for an additional 10 years … we look forward to this new partnership”

The 6567sq m Tennyson Centre provides essential ambulatory care, and is a property asset with strong leasing fundamentals including high-quality tenants operating in the identification, assessment and treatment of cancer.

Allied health tenants include Icon, Genesis, Nexus and Dr Jones & Partners.

Northwest is the largest owner and manager of healthcare property in Australia and New Zealand and specialises in the long-term ownership and development of market-leading health infrastructure and precincts.

The REIT won approval for an 11-storey addition to the heritage-listed Epworth Freemasons hospital in East Melbourne earlier this year.

It also negotiated a 50 per cent interest in Epworth Geelong in for $89.8 million and a 50 per cent interest in 4.2ha of land next to Epworth Geelong for $15 million with a commitment to create an integrated innovation, education and healthcare precinct.

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