AXA Investment Managers – Real Assets entered the Australian healthcare real estate market through a partnership with Grosvenor Group and Sydney-based Centuria Capital Group.
AXA, Grosvenor Group and Centuria’s new subsidiary, Centuria Heathley, have established the Australian Diversified Healthcare Fund (ADHF) to build and hold a real estate portfolio of A $ 500 million (€ 308.4 million) across the Australia.
AXA IM and Grosvenor will be equal partners, together holding 94% of the fund. Centuria Heathley will take a 6% minority stake.
ADHF would have two Queensland hospitals – Mater Private Hospital in Townsville and Westside Private Hospital in Brisbane – together valued at A $ 88 million.
Jason Huljich, Co-CEO of Centuria Group, told IPE Real Assets that the new ADHF company represents the group’s largest institutional mandate to date.
The platform had come together almost by coincidence, with the three parties seeking to enter the healthcare industry.
Centuria today entered into an agreement announced in May to purchase a 63% stake in Heathley, a longtime healthcare real estate fund manager, to create Centuria Healthley, which will be managed by Centuria.
Centuria co-CEO John McBain said healthcare is a fast growing industry globally.
“We are delighted that the announcement of the founding of Centuria Heathley coincides with the announcement of the partnership with AXA IM and Grosvenor,” he said.
Huljich said the group had sought to diversify away from its core investments in commerce and industry, and healthcare came through with an opportunity to buy into Heathley.
Two months ago, he said, the group started working with AXA IM, which was looking to increase its exposure to healthcare because of its positive outlook on the long-term outlook for the industry.
Huljich said Grosvenor, who was already exposed to healthcare globally, was an existing investor in Heathley.