Australian Unity Makes Bank After Selling Adelaide Private Hospital

Australian Unity's $1.3 billion unlisted property trust has sold an Adelaide private hospital for nearly $10 million more than its current value.

Australian Unity’s Healthcare Property Trust engaged in a transaction with Cromwell Property Group who secured the Calvary Wakefield Private Hospital and Medical Clinic for $50 million.

In November, the trust raised $250 million within three days in order to fund future development and acquisition opportunities.

Australian Unity's head of healthcare property Chris Smith said the sale price was well in excess of the property’s current book value of $40.19 million.

“Wakefield has been a strong performer for the HPT and has delivered an internal rate of return of 16.9 percent per annum for investors since its acquisition in 1999,” he said.

“We looked at a number of other uses for the property but determined that selling the property was in the best interests of investors.”

The Calvary Wakefield Private Hospital – located in Adelaide’s central business district – occupies an entire block of 8,275 square metres, with a gross building area of 15,500 square metres.

It is expected that the current tenant, Calvary Health Care, will vacate the property after their lease expires in July 2019, following the completion of their new facility.

Earlier this year the Trust entered into an unconditional agreement to acquire 150 Charlotte Street, Brisbane for $105.75 million.

“We’re very pleased that we will be able to recycle the capital from the sale of this asset to put toward our $600 million development pipeline,” Smith said.

Australian Unity is currently involved with the $1.1 billion Herston Quarter project in Brisbane, which is planning on constructing new retirement and aged care buildings, a new private hospital, new residential developments and car parking over the next 10 years.