A booming population and growing demand for health services in Melbourne’s west are behind Australian Unity’s Healthcare Property Trust’s (HPT) latest acquisition of The Sunshine Private Medical Centre and Day Surgery and surrounding development land for $33 million, announced today.
The Sunshine Private Medical Centre and Western Day Surgery has been acquired for $20 million and has a net lettable area of 2,452 square metres and net property income of $1.376 million a year, which represents a yield of 6.88%.
The building has three levels and associated car parking at ground level and key tenants include Western Day Surgery, Melbourne Pathology, Monash IVF, Fresenius Dialysis Clinic and the Royal Children’s Hospital.
In addition, an adjoining development site, with an existing planning permit for a 150-bed private hospital in place, is to be acquired for $13 million.
Chris Smith, head of healthcare property at Australian Unity said research into the area’s population growth, clinical trends and socio-economic status showed the growing opportunity for health service providers.
“We know Melbourne’s west is experiencing one of the biggest growth surges in the state, but infrastructure and services aren’t keeping up with this bursting demand”, he said.
Mr Smith said while the public hospital system continues to grapple with demand it made sense to co-locate private hospitals with established public facilities to provide patients with access to a broader range of specialist health and medical services.
“Today the private healthcare system performs two out of three elective surgeries in Australia, three out of five acute surgeries and three in four eye Enquiries: Nathan Clarke Six O’Clock Advisory Mob:0400 442 414 Contact details: Australian Unity Limited 114 Albert Road South Melbourne VIC 3205 Tel: 13 29 39 Media Release surgeries. The private system also performs 48 per cent of all heart surgeries in Australia,1 he said.
“Our expansion in Melbourne’s west is not only a wise investment, but it will provide the community with increased choice and assist in reducing demand on local public hospitals”, said Mr Smith.
Units in this Trust are issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No 234454. Information provided here is general information only and current at the time of publication and does not take into account the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Product Disclosure Statement (PDS) and seek professional financial and taxation advice. The Trust is currently closed to new investments.
1 Australian Private Hospitals Service Provision, Australian Private Hospitals Association, June 2016 http://www.apha.org.au/wp-content/uploads/2016/06/Private-hospital-service-provision-June-2016.pdf