Ex-premier seals bargain fertility clinic deal
Real Asset Management has sold another Brisbane healthcare investment for a loss on its outlay.
The Bowen Hills Fertility Clinic at 1/36 Edmonstone Road, a site abutting the Brisbane River, collected $14.6 million following an expressions of interest campaign early last year.
Arcana Capital, led by former state premier Campbell Newman, is the buyer.
Settling last month, the deal for the part vacant investment reflects an 8.24 per cent fully let yield.
RAM outlaid a bullish $20.5m – a 4.64pc return – in late 2021, when interest rates were at record low and demand for healthcare assets was at a peak.
That seller paid receivers $8.36m in mid-2020, during the COVID lockdown.
Bowen Hills is three kilometres north east of town.
Income to increase: Arcana
Near Royal Brisbane and Women’s hospitals, Herston Specialist Clinic and Bowen Hills Medical Specialist Centre, 1/36 Edmonstone Rd contains 2158 square metres of refurbished space (story continues below).
Anchor Life Fertility Clinic is on a lease expiring in 2025; its space it fitted with andrology facilities, an embryology laboratory, procedure rooms and recovery areas.
Arcana has just appointed agents to fill a major ground floor vacancy.
RAM held in the asset in the ASX-listed Essential Services Property Fund (REP).
RAM reweighs REP
The deal comes a fortnight since we reported RAM for REP shed two Brisbane assets for a combined c$12.8m – a drop on the $15.9m outlay in 2021.
The asset manager is investing for the trust too, including today, with the purchase of the Cairns Day Hospital from Centuria for $23m – a seven per cent yield.
Cushman & Wakefield’s Peter Court marketed Bowen Hills.
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