HPT head of healthcare and retirement property, Chris Smith, said the purchase of the property will “enhance the geographic, property type and tenant income diversification of HPT and will be funded by capacity within the debt facility”.
The property, which according to Mr Smith will generate an initial yield of 9.8 per cent, is a three-storey medical technology facility, spanning 10,556 square metres and with a basement security car park for 156 vehicles.
Located in St Leonards, seven kilometres from the Sydney CBD, the property is within walking distance of the main building of the Royal North Shore Hospital.
Global prosthetics and medical equipment manufacturer and distributor, Stryker Australia, will be the anchor tenant of the property.
Mr Smith said healthcare property continued to be an attractive asset class with high demand.
“HPT has seen considerable investor support over the past year, with inflows comparable to pre-GFC levels,” said Mr Smith.
Long-term prospects for healthcare were very positive, with Australia’s ageing population and the associated health and medical implications driving demand for private health care and related services.
“There is already evidence of expanding demand in the sector and having built significant capacity for further acquisitions, HPT stands ready to capitalise on this demand for the benefit of its investors,” Mr Smith said.
The trust was looking to make a number of other property acquisitions and brownfield developments, with a focus on hospitals, medical centres and other health-related assets valued at over $10 million.
Since its inception, HPT has returned 11.44 per cent; over 10 years it generated an 11.56 per cent return; over 3 years it returned 7.28 per cent; and the one-year return sits at 9.48 per cent.
