“The site is expected to respond to the community’s socio-economic demographic, bolstered by a growing population with a high take-up of private health insurance,” Lochtenberg said.
Meanwhile, the ASX-200 listed real estate funds manager Centuria Capital Group has boosted its exposure to the sector, buying $223 million worth of assets, including a private hospital site and a retail asset, on behalf of existing institutional partnerships.
The Centuria Prime Partnership (CPP), which is a healthcare and real estate-focused joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI), will develop a new private hospital in Sydney’s inner-south suburb of Alexandria, which will have a $163 million end value.
The 3000 square metre site at 28-32 Bourke Road will transform an existing single-storey light industrial building into a 10,500 square metre seven-level, purpose-built hospital complemented by allied health operators, with 43% of the development pre-leased on a 15-year term.
The Alexandria development expands CPP’s portfolio to four assets with an estimated end value on completion exceeding $372 million.
Centuria’s joint chief executive Jason Huljich said Alexandria benefits from its proximity to Sydney’s CBD “while providing significantly sized land parcels that are ideal for private hospitals, which require large floor plates and multiple levels”.
Centuria also bought Cameron Park Plaza in Newcastle from Woolworths for $60.25 million. The Colliers team of James Wilson and Alex James-Elliott negotiated the deal and said there were more than 180 purchaser enquiries and 11 first-round offers throughout the on-market campaign.
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