SA’s Commercial & General targets national healthcare growth
Commercial & General has underlined its strategic focus on Australia’s burgeoning healthcare market with the announcement that it has entered into a joint venture with ASX-listed Dexus to create a new wholesale unlisted healthcare property fund.
The joint venture with Dexus – one of Australia’s leading real estate groups managing a property portfolio valued at more than $22 billion – will create the Australian Healthcare Property Fund.
The new fund is being seeded with Commercial & General’s Calvary Private Hospital and GP Plus Medical Centre developments in Adelaide (combined $370m completion value). In addition, the fund has a pipeline of developments worth approximately $3 million located in other states including NSW and Queensland.
Commercial & General has approximately $1 billion of projects completed or in development including in SA Flinders commercial office tower, SAPOL headquarters and WEST (Adelaide’s former Football Park redevelopment),. The company is also the preferred proponent on the $1 billion old Royal Adelaide Hospital redevelopment with project partner John Holland Group.
“We are a proud South Australian based company committed to generating market opportunities and jobs through high quality developments nationally,” said Executive Chairman Jamie McClurg.
“Commercial & General’s abilities in conceiving, structuring, delivering and managing high quality assets together with Dexus management and pedigree, will leverage these high quality seed assets to develop a leading, scalable fund for wholesale investors.”
The Responsible Entity of the fund will be wholly owned by Dexus as part of the group’s funds management platform. Marketing of the new fund will commence in July 2017.
CEO Trevor Cooke said” Our strategic focus on delivering healthcare assets in South Australia has given us the critical mass we needed to move to a level of significance at a national level and to work with quality partners such as Dexus”.
“Dexus has enormous credibility in this space and we believe the creation of this new fund gives both our organisations significant opportunities to grow” he said.
“We are pleased to partner with Commercial & General and look forward to continuing to build scale in the growing healthcare sector, which will benefit from the underlying mega-trends of population growth and an aging demographic,” said Darren Steinberg, Dexus Chief Executive Officer.
“We see this property asset class as a logical extension to our funds management platform.”
Australian Healthcare Property Fund seed properties
Adelaide Calvary Private Hospital, Adelaide SA (under development)
The Adelaide Calvary Private Hospital is a 57,000m2 private hospital currently under construction. Located on the corner of Angas and Pulteney Streets in the Adelaide CBD, the hospital will offer clinical services, consulting suites as well as a 24-hour emergency department. The accommodation includes 343 overnight beds including intensive care unit beds and 62 day beds.
Construction of the hospital commenced in May 2016 with completion expected in the first half of 2019. On completion, the hospital will be leased and operated by Calvary Health Care Adelaide Limited on a 30 year triple net lease.
GP Plus Medical Centre, Elizabeth SA
GP Plus Medical Centre is located at 16 Playford Boulevard, Elizabeth, in the northern suburbs of Adelaide. The asset is a modern campus-style purpose built primary grade health care facility, completed in 2010 and comprising a ground floor and one upper level of medical accommodation.
The facility is currently leased to the South Australian Government on a 14-year lease across 4,600m2 of net lettable area providing 35 consultant suites.
Commercial & General is a vertically integrated property group that develops, constructs, manages and invests, together with its investor clients, in high quality commercial, industrial and multi-unit residential properties throughout Australia. The total value of projects undertaken by Commercial & General to date is in excess of $1 billion. Commercial & General is a South Australian based company with offices in Melbourne and Sydney.