Fund manager sells government-backed asset
EXCLUSIVE
Dexus has broken even on the sale of a major north Adelaide healthcare investment held eight years.
The GP Plus Health Centre at Elizabeth is trading for $42 million – 12 months after it listed for sale.
Sydney private investor Annerley Group is believed to be the buyer after a deal to Cromwell fell through, sources say.
The result reflects a speculated 7.2 per cent yield.
Cromwell was intending to hold it in the Healthcare Property Fund which promoted a seven per cent annual distribution paid monthly.
JLL’s Simon Quinn and Ben Parkinson were the agents.
East coast fund managers trade Adelaide asset
Developed in 2010 for state government healthcare operator Adelaide Health Service Incorporated, the Elizabeth asset, 16 Playford Boulevard, contains 4319 square metres with 35 consulting suites.
The current lease cycle expires in August, 2030, with annual reviews at CPI plus a per cent.
The AHSI will then be presented with the first of two five year renewal options (story continues below).
Elizabeth is 24 kilometres from town.
Development upside
The Urban Activity Centre zoned Elizabeth site spreads 1.17 hectares with immediate development upside – though this would eat into the 186 car parks.
Brisbane based Cromwell was seeking to raise $27.75m.
It would also have collect a $420,000 fee for the acquisition and earned an income from management.
A performance fee would have been earned too if the manager generated 20pc in cash over the targeted nine per cent internal rate of return.
It was expected the property would be held five years.
Sydney based Dexus seeded its Australian Healthcare Property Fund in 2017 with several assets including 16 Playford Blvd.
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