The Australian Unity Healthcare Property Trust (HPT) has purchased a property at 9-13 Flintoff Street, Greensborough, Victoria for $6.8 million.
This transaction is the fourth acquisition and development that HPT will undertake with Primary Health Care since forming a strategic partnership with the ASX-listed entity in 2015.
The property comprises a two-level commercial building on a site of approximately 2,448 square metres. The site is situated 17 kilometres from the Melbourne CBD and is close to the Greensborough railway station and commercial centre.
The large-format medical centre will include general practice, day surgery, pathology, radiology, pharmacy and physiotherapy.
Development costs are expected to be approximately $13.3 million. Upon completion of the works, the property will be leased to Primary Health Care on a 15-year lease.
Chris Smith, head of healthcare and retirement funds at Australian Unity Real Estate Investment, said HPT's acquisition and development pipeline continues to grow and currently represents a total investment of more than $260 million over the next two years.
"This acquisition is consistent with HPT's strategy to expand the portfolio by capitalising on opportunities to provide sought-after medical services to more Australians.
"It was funded from HPT's cash reserves, bringing its assets under management to more than $940 million with a portfolio of 32 properties," Mr Smith said.
The latest acquisition follows HPT's completion of a $14.1 million expansion of The Valley Private Hospital in Mulgrave, Victoria in early 2016, as well as a $10.6 million expansion of Beleura Private Hospital in Mornington, Victoria in late 2015. HPT also recently completed a $7.5 million conversion of an office building in Townsville, Queensland to create a new mental health clinic, and a $5.1 million expansion and refurbishment of Brisbane Waters Private Hospital in Woy Woy, NSW.
Australian Unity Real Estate Investment is the property funds management business of Australian Unity Investments, part of the Australian Unity group, a national healthcare, financial services and retirement living organisation that has been operating for more than 175 years.
Australian Unity Real Estate Investment was established in 1998 and, through its unlisted property funds, owns and manages more than 50 properties in the healthcare, retail and commercial sectors across Australia. It has $2 billion in funds under management (as at 31 March 2016).
HPT owns 32 hospitals, medical centres, and aged care facilities across Australia, and has more than $940 million in funds under management as at 31 March 2016.