This article originally appeared in Australian Property Markets News
Fund manager Real Asset Management has acquired 2 private hospitals in Taree and Dubbo, NSW for $63M for its RAM Australia Medical Fund.
The Taree Private Hospital at 2 Potoroo Drive, Taree is an integrated private medical, rehabilitation and mental health facility set on 8.2ha of land. The hospital includes 79 inpatient beds and an additional 20 day chairs / beds with 3 high quality operating theatres and a day surgery unit.
RAM settled the asset in late December for $44m.
The facility is operated by Health-e Car, the third largest private hospital operator in Australia and one of the country’s largest privately-owned health care organisations. The group employ 7,000 people and operate a portfolio of 36 private hospitals and day surgeries across Australia and in New Zealand.
The smaller Dubbo Private Hospital was acquired for $18.65m and comprises a purpose built medical, surgical and rehabilitation hospital located in Dubbo’s key healthcare precinct. The facility which has 53 beds, 3 high quality operating theatres, and a day procedures suite, is also fully leased to Healthe Care.
RAM seeded the fund in late 2018, with its acquisition of the Miami Day Hospital on the Gold Coast, which it secured off-market for $11.25 million on a yield north of 7.5 per cent. The Fund has now grown to include 6 assets across NSW, Queensland and Tasmania.
The wholesale fund is targeting an 8 per cent to 10 per cent in total return annually after fees, with much of that coming from the income. Its investors are typically wealthy individuals, family offices and smaller institutions.