Investment manager Centuria Capital Group (ASX: CNI) is continuing to bolster its healthcare and retail portfolios after securing $223 million worth of assets on behalf of existing institutional partnerships.
Two months after establishing new institutional healthcare property joint venture Centuria Prime Partnership (CCP) with Morgan Stanley Real Estate Investing (MSREI), the joint venture (JV) has acquired a development site in Sydney’s inner-southern suburb of Alexandria.
Expected to be worth $163 million upon completion, the 3,000sqm site will be transformed from an existing single-storey light industrial building into a 10,500sqm seven-level, purpose-built hospital complemented by allied health operators.
Situated at 28-32 Bourke Road, the development will be the fourth high-quality asset acquired by MSREI-sponsored investment vehicle - with a total estimated end value on completion of more than $372 million.
CPP’s other assets include the $75 million Adeney Private Hospital in Kew, which will be operated by a JV between doctors and private health insurer Medibank. The hospital will provide four theatres, an infusion chemotherapy clinic and 30 beds.
In addition, CPP has invested in the $96 million Westside Private Hospital in Brisbane, operated by Montserrat Day Hospitals, part of Healius (ASX: HLS), and the $39 million Mater Private Hospital in Townsville.
As part of the same announcement today, Sydney-based Centuria has confirmed the acquisition of a NSW neighbourhood shopping centre on behalf of its global institutional investor in a deal worth $60.25 million.
Cameron Park Plaza, situated 17km west of Newcastle’s CBD, is a 7,037sqm facility anchored by a full-line Woolworths supermarket, three mini-major tenants, 17 specialist stores, and two kiosks.
Completed in 2020, the property at 73 Northbridge Drive has an occupancy rate of 98 per cent and weighted average lease expiry (WALE) value of 7.6 years, and increases Centuria’s daily needs retail portfolio to more than $600 million.
Valued at $20.2 billion as of 31 December, the acquisitions add to Centuria’s assets under management as the property funds management and investment bonds specialist continues to seek out premium purchases.
“Centuria continues to source and execute prime real estate acquisitions that attract high-calibre operators while meeting the requirements of our existing institutional capital partnerships,” Centuria Joint CEO Jason Huljich said.
“We will continue to expand our institutional partners’ high-quality portfolios with existing real estate and fund-through opportunities across geographically diversified markets.”
Shares in Centuria (ASX: CNI) have dropped by 1.12 per cent to $2.22 as of 1.10 AEST on the back of the announcement.
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