Centuria wins $500m healthcare mandate
Ambitious property fund manager Centuria Capital has won a $500 million mandate from two European institutional investors for the healthcare property platform it recently set up with Heathley.
The major mandate is vindication of Centuria’s to diversify into the healthcare real estate while underscoring the growing appetite from large investors for the rapidly expanding sector.
The joint mandate is from AXA Investment Managers and the Grosvenor Group for the platform, to be known as Centuria Heathley, to originate and deliver around $500 million healthcare real estate portfolio.
Grosvenor, based in London’s Mayfair, is the Duke of Westminster’s privately owned international property operation and already an investor in commercial property in this market.
Under a deal struck in May, Centuria takes a 63.06 per cent economic interest in Heathley’s property funds management platform, which comprises $620 million in unlisted funds focused on healthcare, including medical centres, day hospitals and tertiary aged care.
That $24.4 million investment is due to settle shortly.
With the large European mandates in hand, the Centuria Heathley platform together with AXA IM and Grosvenor Group will own a portfolio through joint venture named Australian Diversified Healthcare Fund.
Centuria Heathley will take a minority stake in that venture.
The partners aim to create a $500 million healthcare real estate portfolio, seeded with two with assets worth $88 million already on the Centuria Heathley platform: the Mater Private Hospital in Townsville and the Westside Private Hospital in Brisbane.
Along with the portfolio it already manages, Centuria Heathley has strategic relationships with a range of specialist healthcare operators with a further identified pipeline of $400 million.
Centuria has committed to progressively co- investing up to $15 million in ADHF as its portfolio grows.
“Centuria Heathley embeds a quality healthcare real estate platform alongside our
established listed and unlisted property fund vehicles,” Centuria’s joint chief executive John McBain said.
“Healthcare is a fast-growing sector globally, and we are pleased that the announcement of the establishment of Centuria Heathley coincides with the announcement of the partnership with AXA IM and Grosvenor.”
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Jason Huljich, who is Centuria’s other joint chief executive, noted the ADHF venture represented the group’s largest institutional mandate to date: “We intend to work closely with our new partners to grow the portfolio utilising Centuria’s transactions and property services team.”
Institutional investment into healthcare property has been increasing.
Canada’s NorthWest Healthcare Properties, backed by GIC, is acquiring half of Healthscope’s $2.5 billion hospitals portfolio, with New York-listed Medical Properties Trust taking over the other half.
ASX-listed Dexus has set up in a wholesale healthcare real estate fund with Adelaide-based developer Commercial & General winning investment from a major Malaysian retirement fund among others.
