4 February 2016
Sydney boutique Barwon Investment Partners has bought the Newmarket Medical Centre in the third purchase by its unlisted Healthcare Property Fund.
Ben Wilmot THE AUSTRALIAN 4 February 2016
The purpose-built medical centre, near the Brisbane CBD, is a multi-let to primary and allied care providers, and lifts Barwon’s portfolio to three primary care facilities in Queensland and Victoria.
The wholesale fund plans to acquire more than $100 million in healthcare real estate assets over the next two years but faces an increasingly crowded field as other fund managers chase similar assets.
Barwon’s strategy is focused on investing in properties including medical centres, diagnostic and laboratory facilities, private hospitals and ancillary healthcare properties, which generate distribution yields of 7-8 per cent for the trust.
“With current volatility in financial markets, we are seeing more interest in unlisted healthcare property as investors seek defensive investments offering a combination of growth and high recurring yields,” Barwon Investment Partners director Rob Morrison said.
“We continue to see great opportunities in the healthcare property sector in Australia, with healthcare real estate having outperformed the direct property market over the last eight years.”
Australian Unity’s health property fund last year struck a deal to partner with listed Primary Health Care and Barwon may go down this path. “We are also seeking to partner with key healthcare tenants and operators who require specialist real estate capital to support their expansion,” Mr Morrison said.