AFR 24 July 2017

Barwon Buys New Lab

Nick Lenaghan, 24 July 2017

Sydney-based manager Barwon Investment Partners has bought its second pathology lab in Melbourne, for $24.6 million, as it quickly invests out a new healthcare property fund. The pathology facility on Banksia Street at Heidelberg in Melbourne’s north-east is the main laboratory for Dorevitch Pathology.

The property was acquired in an off-market transaction with Arena REIT as the manager for the Banksia Street Heidelberg Joint Venture. The property is leased for 14 years to Dorevitch, a subsidiary of the listed Primary Healthcare.

“We are pleased to have secured this quality property in an off-market transaction for our Barwon Institutional Healthcare Property Fund,” Barwon partner Robert Morrison said. “With a long lease and high quality tenant, the Dorevitch Pathology facility represents a critical piece of healthcare infrastructure supporting the medical care of Victorians across the state”.

Barwon has moved quickly since launching a $500 million healthcare property fund for wholesale investors late last year.
The fund was seeded in February with another Melbourne pathology facility in a $20.5 million deal, which Barwon acquired through a sale and leaseback with Australian Clinical Labs.
In its biggest deal to date, the Barwon fund bought the Australian section of the Evolution Healthcare portfolio, three New South Wales hospitals, for $76.5 million in April.

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