Centuria expands institutional healthcare & retail portfolios
- Centuria has secured c.$223m of acquisitions, including:
- $163m1 private hospital development, Alexandria NSW, 43% pre-leased, 15 year term
- $60m Cameron Park Plaza, NSW; 98% occupancy2; 7.6 year WALE3; Woolworths anchored.
- Expands existing institutional partnerships:
- Healthcare portfolio with Morgan Stanley Real Estate Investing, Centuria Prime Partnership (CPP)
- Retail portfolio with a global institutional investor.
ASX-200 listed real estate funds manager, Centuria Capital Group (ASX:CNI), has secured $223 million worth of healthcare and daily needs retail assets on behalf of existing institutional partnerships.
A healthcare real estate focused joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI), known as Centuria Prime Partnership (CPP), will develop a new private hospital in Sydney’s inner south suburb of Alexandria, which will have a $163 million end value1.
The c. 3,000sqm site, located at 28-32 Bourke Road, Alexandria NSW, will transform an existing single storey light industrial building into a c.10,500sqm seven level, purpose built hospital complemented by allied health operators. Forty three per cent of the development is pre-leased on a 15 year term.
The Alexandria development expands CPP’s portfolio to four high quality assets with an estimated end value on completion exceeding $372 million.
Jason Huljich, Centuria Joint CEO, said, “Alexandria benefits from its proximity to Sydney’s CBD while providing significantly sized land parcels that are ideal for private hospitals, which require large floorplates and multiple levels. This is a rare opportunity to deliver new, bespoke healthcare infrastructure in such a central location for Sydneysiders, which is why we are confident it will attract other allied health operators seeking to co-locate at the hospital.”
Additionally, Centuria, via its existing daily needs retail partnership with a global institutional investor, secured the $60.25 million Cameron Park Plaza shopping centre located at 73 Northbridge Drive, Cameron Park NSW, 17km west of Newcastle’s CBD.
Built in 2020 by Woolworths Group’s development business, Fabcot, the 7,037 sqm neighbourhood shopping centre is anchored by a full-line Woolworths supermarket in addition to three mini-major tenants, 17 specialist stores and two kiosks. 100% of the asset’s income is underpinned by non-discretionary tenants and 70% is leased to ASX-listed and national chain tenants.
Cameron Park Plaza increases the global institutional investor’s daily needs retail portfolio to over $600 million4.
Mr Huljich, said, “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. We will continue to expand our institutional partners’ high quality portfolios with existing real estate and fund-through opportunities across geographically diversified markets.”
TGC Agency’s Paul Hunter and John Romyn executed the Alexandria site’s sales campaign.
Colliers International’s James Wilson and Alex James-Elliott managed Cameron Park Plaza’s expression of interest sales campaign.
1. Estimated as completed value
2. Occupancy includes c.98% secured tenancies and rental guarantees
3. Weighted Average Lease Expiry as at settlement, 30 June 2022. WALE calculated by income.
4. Includes current and contracted assets as at 26 May 2022
Centuria Capital Group secures a $70.6million industrial logistics facility in North Rocks, NSW, on behalf of US private investment firm, Starwood Capital’s, Last Mile Logistics Partnership (LMLP).
Centuria Capital Group has successfully exchanged conditional contracts to divest two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale NSW, which is anticipated to deliver a forecast 13.8% IRR to the assets’ closed-ended fund investors.