Impact Investment Group has lifted its property funds management empire to almost $400 million with the purchase of the Gold Coast Surgical Hospital for $45.8m.
The acquisition, on a net passing yield of about 7.1 per cent, is in keeping with Impact’s focus on high quality properties leased to tenants with a socially beneficial bent.
Impact, owned by chief executive Chris Lock and Small Giants, the private investment company of Melbourne’s Berry Liberman and businessman partner Daniel Almago, had about $340m of real estate assets under management ahead of buying the hospital.
The group, set up in early 2013 focuses on “impact investing” — an investment approach that delivers competitive financial returns and measurable social and environmental returns — and it also owns a wind farm via an unlisted trust and runs a solar energy infrastructure fund.
The hospital is anchored by the ASX-listed Pulse Health on an initial lease term of 15 years and the property spans a total net lettable area of 6549sq m and has 83 secure car spaces.
The sale of the hospital, which is located in the healthcare precinct of Robina and Varsity Lakes area, near Bond University and the M1 Motorway, was brokered by Ian Hertherington and Peter Chapple of Savills. They could not be reached for comment.
Impact now intends to develop one of the largest rooftop solar PV installations in Queensland on the hospital, significantly cutting its carbon footprint.
The firm picked up the hospital via an unlisted unit trust vehicle, co-investing with it’s stable of like-minded, sophisticated and wholesale investors. They are forecast to receive quarterly, tax-effective income distributions of 9.5 per cent per annum.
“Acquiring the Gold Coast Surgical Hospital provides our co-investors with exposure to a growth sector while delivering a reliable income stream underpinned by an ASX-listed healthcare operator. IIG will continue to seek exposure to healthcare real estate,” Impact chief executive Chris Lock said.
“We are particularly excited about our plans to develop one of the largest rooftop solar PV systems in Queensland on the rooftop of the hospital. The PV installation plans align well with our intention to deliver strong commercial returns alongside meaningful social and environmental outcomes to our co-investors,” he said. Impact has been active in Queensland. Last year it bought Brisbane’s newest office tower, K1, from Lend Lease for more than $130m. Lend Lease is developing the nine-level, 16,600sq m building office tower at 1 King Street in Fortitude Valley within its $2.9bn, Brisbane Showgrounds project.
