Centuria Capital Group (ASX:CNI) acquires new healthcare properties

• Centuria Capital Group (CNI) has acquired more than $466 million of healthcare properties across Australia and New Zealand
• Over the past two months, the company has acquired many key properties, including 38 aged care assets for NZ$291 million (A$276 million)
• Around 36 per cent of the portfolio will be owned by the open-ended Australian-based Centuria Healthcare Property Fund (CHPF), adding to its existing 18 assets worth around $415 million
• The remaining 64 per cent, will be owned by the new unlisted Centuria New Zealand Healthcare Property Fund (CNZHPF)
• Centuria Capital Group shares are up 1.49 per cent to trade at $3.41

Centuria Capital Group (CNI) has acquired more than $466 million of healthcare properties across Australia and New Zealand.

Over the past two months, the company has acquired many key properties, including a geographically dispersed New Zealand portfolio of 38 aged care assets for NZ$291 million (A$276 million).

The sale and leaseback portfolio transaction provides a 30-year weighted average less expiry (WALE), underpinned by triple-net leases and a 100 per cent portfolio occupancy, operated by New Zealand provider, Heritage Lifecare.

Around 36 per cent of the portfolio, including 13 assets, will be owned by the open-ended Australian-based Centuria Healthcare Property Fund (CHPF), adding to its existing 18 assets worth around $415 million.

The remaining 64 per cent, including 25 assets, will be owned by the new unlisted Centuria New Zealand Healthcare Property Fund (CNZHPF).

Additionally, CHPF has secured a $75.7 million Varsity Lakes Day Hospital located in Varsity Lakes, Queensland.

The facility, anchored by Queensland Health, provides a 6.6 year WALE and 100 per cent occupancy and includes six digitally integrated operating theatres, 24 consulting suites as well as, gym facilities and retail tenancies.

CHPF has also secured a $38 million site in Sydney’s Alexandria suburb for potential future development of a healthcare property.

Centuria Healthcare Managing Director Andrew Hemming said the company was expanding its diversification of CHPF with the fund’s first foray into the New Zealand property market.

“Demand for aged care real estate within New Zealand can continue to increase due to the undersupply of existing facilities and an increasing ageing population,” he said.

“Furthermore, CHPF benefits from the addition of a rare high-quality day hospital on the Gold Coast, which provides investors with an immediate revenue stream while the Alexandria site acquisition presents an opportunity to unlock further value through development.”

Centuria Group joint CEO Jason Huljich said the healthcare properties offered many advantages.

“These acquisitions provide unique opportunities to secure high-quality assets, further expanding Centuria’s healthcare platform across both Australia and New Zealand,” he said.

“We foresee rising demand for bespoke, modern hospitals within our domestic market, which provide cost-effective models of care that also focus on patient wellbeing.”

Centuria Capital Group shares ended the day up 1.49 per cent to trade at $3.41 per share.