Rapidly growing Australian-owned funds management firm Real Asset Management Group (RAM) has continued to acquire in demand medical real estate assets as it moves closer to listing the RAM Essential Services Property Fund on the ASX as a REIT.
The RAM Group announced today it had recently exchanged contracts on four new medical asset purchases worth a combined $42.5 million, struck on a blended cap rate of 5.9%.
The properties include the well-established Madeley Health Centre and the Swan Medical Centre in Perth, West Australia, as well as the Willets Health Precinct, which includes two day hospitals, in Mackay, Queensland and the Banyans Health and Wellness residential rehabilitation retreat 30km north of Brisbane in Queensland.
The mostly off-market purchases mean RAM has now acquired seven properties worth $150 million in the past six months, after the group announced the purchase of three strategically located regional hospitals for $100 million last December.
With the latest acquisitions RAM’s essential services property portfolio grows to 13 geographically diversified essential services neighbourhood retail centres and 10 high quality primary healthcare assets, four of which are private hospitals.
RAM Head of Real Estate, Will Gray said the group was building momentum and reviewing a further $180 million of possible transactions as it continued to seek quality assets in the medical and healthcare property space.
“With these acquisitions we have again demonstrated our ability to source and secure primary healthcare assets that are highly sought after in a largely illiquid market. Pleasingly the latest assets encompass value-accretive investments with long-term potential for incremental development or repositioning which aligns well with our hands on active management approach.
“RAM’s healthcare portfolio has a blended WALE of circa 11yrs and 97% income exposure to primary healthcare offerings of private hospitals, day hospitals and medical centres,” he said.
RAM Group Australia CEO Scott Kelly said Australia was looking at long-term sectoral demand around the need for medical and healthcare service-based assets.
“The provision of private healthcare services, including the assets they occupy will only increase in demand as the public healthcare sector continues to be burdened by high patient demands and aging assets.
“Essential services neighbourhood retail centres are also an attractive investment proposition offering a capital resilient profile and reliable income streams with a demonstrated resilience through COVID-19,” he said.