Elanor Picks Up Brisbane Health Centre for $37m

Healthcare assets are continuing to be a source of opportunity for investors, with Elanor Investors Group picking up a Brisbane property for its $161 million targeted fund.

The Woolloongabba Community Health Centre was acquired for $37 million and is the third property in the ASX-listed group’s Elanor Healthcare Real Estate Fund.

The sector has pushed ahead of office and retail assets during Covid-19 with major real estate investment trusts building portfolios.

The transactions top out with Dexus’ $446.2 million Australian Bragg Centre buy for the under-construction research facility in Adelaide.

Canadian-giant Northwest Healthcare has raised $150 million to finance three property projects in the coming months, while Centuria has also proven its focus in the sector, signing paperwork for the $133 million Bloomfield medical centre in New South Wales.

These changing investment themes and opportunities will be unpacked during The Urban Developer’s property healthcare vSummit on Thursday, 29 October.

The Woolloongabba Community Health Centre is located within a prime health precinct in Brisbane close to the Princess Alexandra Hospital.

The 4,966sq m building is fully leased to Queensland government’s Metro South Health Department with a weighted average lease expiry of 5.4 years.

It has a 27-chair dental surgery, mental health administration services and 134 car parking bays however the 4,150sq m site could be further developed.

Elanor co-head of real estate David Burgess said strong sector fundamentals are expected to continue and they are looking to invest in properties providing vital out-of-public hospital services.

“This strategy capitalises on the growing cost pressures on the healthcare system, and combined with advances in health technology, is driving the delivery of healthcare services to lower-cost day surgeries and medical centres,” Burgess said.

“The resilience of the healthcare real estate sector during Covid-19 saw the fund’s portfolio perform exceptionally well during the period.

“Our active asset management of the fund’s assets has already resulted in lease extensions of key tenants.

“Furthermore, there was minimal impact on rental income at the properties, with the fund delivering investors an annualised distribution yield of 7.3 per cent and 7.5 per cent in the June and September 2020 quarters, respectively.”

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