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26-10-2014, 09:01 AM
Heathley invests in the aged
Mercedes Ruehl
558 words
21 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
What Westfield did to retail 50 years ago is happening to healthcare property.
At least that is the view of boutique fund manager Heathley. It has launched a fund that will target $150 million in medical real estate such as day surgery centres and private hospitals.
A well-respected name in funds management, Heathley has already tapped existing investors and seeded the fund, called the Heathley Direct Medical Fund 1, with four properties worth just under $20 million.
Heathley's head of distribution and investor relations, John Taylor, said fragmented ownership and mobility challenges for older people is one example of opportunity in the sector.
"What is increasingly happening is similar to what Westfield did years ago for the retail sector," he said. "So you might need to visit the GP, then get an X-ray and then visit the pharmacy. That type of 'one stop shop' model is only just starting to get rolled out more broadly. "
Andrew Hemming, the managing director of Heathley, said the current fragmented ownership in the sector means there is room for better and more efficient management of healthcare properties. At the same time, better technology has given rise to new day surgeries built to accommodate procedures such as keyhole surgery.
"There is potential to form partnerships with operators and developers and we are looking at doing that," Mr Hemming said. The move comes with a brand new team, including John Taylor, Jacob Treder, Dan Vickerman, Vijitha Yogavaran and Toby Kreis, who joined Heathley this year to focus on health.
"Health has proven itself in boom and bust markets, has well-established corporate players and is well-positioned thanks to an ageing population," Mr Hemming said.Looking to invest $150m
The ownership of GPs, medical centres and day surgeries is fragmented. A rise in the number of older people requires more of these properties to be built in the coming years to meet the demand. There is an opportunity for real estate owners such as Heathley to build scale quickly.
The fund manager is also talking to existing operators and groups of doctors who own real estate. Some of these doctors could invest with Heathley and retain some ownership. HDMF1 is looking to invest up to $150 million over the next two years. It will continue to raise equity over the investment period and then have a five-year management period.
The forecast distribution based on the seed properties is 8 per cent per year, to be paid quarterly.
The fund will have a targeted gearing of 35-45 per cent and is looking for properties in the $5 million to $20 million range. Heathley has tapped existing investors for about $11 million for the seed assets which are 100 per cent leased.
Spread across Victoria, Queensland and NSW, the properties are 100 per cent leased.There are two Victorian assets: 87-89 Langtree Avenue in Mildura is a GP Clinic leased to TriStar Medical and Mildura Optical while 547 Melton Highway in the Melbourne's Sydenham is leased to St Vincent's Hospital.
There is also a two-storey private hospital in Cardiff in NSW leased to Healthe Care & Pendlebury.
In Queensland, the fund owns three strata lots of the Chermside Medical Complex in Brisbane. Tenants include Sonic Healthcare, and Southernx Imaging.
Fairfax Media Management Pty Limited
Document AFNR000020141020eaal0000b
Mercedes Ruehl
558 words
21 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
What Westfield did to retail 50 years ago is happening to healthcare property.
At least that is the view of boutique fund manager Heathley. It has launched a fund that will target $150 million in medical real estate such as day surgery centres and private hospitals.
A well-respected name in funds management, Heathley has already tapped existing investors and seeded the fund, called the Heathley Direct Medical Fund 1, with four properties worth just under $20 million.
Heathley's head of distribution and investor relations, John Taylor, said fragmented ownership and mobility challenges for older people is one example of opportunity in the sector.
"What is increasingly happening is similar to what Westfield did years ago for the retail sector," he said. "So you might need to visit the GP, then get an X-ray and then visit the pharmacy. That type of 'one stop shop' model is only just starting to get rolled out more broadly. "
Andrew Hemming, the managing director of Heathley, said the current fragmented ownership in the sector means there is room for better and more efficient management of healthcare properties. At the same time, better technology has given rise to new day surgeries built to accommodate procedures such as keyhole surgery.
"There is potential to form partnerships with operators and developers and we are looking at doing that," Mr Hemming said. The move comes with a brand new team, including John Taylor, Jacob Treder, Dan Vickerman, Vijitha Yogavaran and Toby Kreis, who joined Heathley this year to focus on health.
"Health has proven itself in boom and bust markets, has well-established corporate players and is well-positioned thanks to an ageing population," Mr Hemming said.Looking to invest $150m
The ownership of GPs, medical centres and day surgeries is fragmented. A rise in the number of older people requires more of these properties to be built in the coming years to meet the demand. There is an opportunity for real estate owners such as Heathley to build scale quickly.
The fund manager is also talking to existing operators and groups of doctors who own real estate. Some of these doctors could invest with Heathley and retain some ownership. HDMF1 is looking to invest up to $150 million over the next two years. It will continue to raise equity over the investment period and then have a five-year management period.
The forecast distribution based on the seed properties is 8 per cent per year, to be paid quarterly.
The fund will have a targeted gearing of 35-45 per cent and is looking for properties in the $5 million to $20 million range. Heathley has tapped existing investors for about $11 million for the seed assets which are 100 per cent leased.
Spread across Victoria, Queensland and NSW, the properties are 100 per cent leased.There are two Victorian assets: 87-89 Langtree Avenue in Mildura is a GP Clinic leased to TriStar Medical and Mildura Optical while 547 Melton Highway in the Melbourne's Sydenham is leased to St Vincent's Hospital.
There is also a two-storey private hospital in Cardiff in NSW leased to Healthe Care & Pendlebury.
In Queensland, the fund owns three strata lots of the Chermside Medical Complex in Brisbane. Tenants include Sonic Healthcare, and Southernx Imaging.
Fairfax Media Management Pty Limited
Document AFNR000020141020eaal0000b