ING Real Estate Healthcare Fund has further diversified its portfolio with the purchase of the freehold interest in Cedar Court Rehabilitation Hospital in Melbourne’s eastern suburbs for $12.9 million.
In addition, IHF has bought three adjoining commercial properties for a further $2.8 million.
The hospital is located in the suburb of Camberwell and comprises 74 beds and associated outpatient rehabilitation services.
Following IHF’s property acquisition, the Epworth Foundation will acquire the hospital business and lease back the hospital facilities under a 15 year lease commencing at settlement.
Settlement is expected in early to mid September 2006.
The hospital is being acquired on an initial freehold yield of 8.25%, after planned IHF capital expenditure and will increase total assets to approximately $60 million.
The acquisition will be fully debt funded, increasing the fund’s gearing level to 47%.
“This is an exciting acquisition for the Fund and further diversifies our asset profile into the developing rehabilitation market in conjunction with the Epworth Foundation, already a market leader in this sector,” ING Real Estate Investment Management’s chief executive Hugh Thomson said.
By Adam Parsons
