Growthpoint Healthcare on a healthy path

Growthpoint Properties has launched South Africa’s first unlisted healthcare real estate investment trust (REIT), Growthpoint Healthcare Property Holdings, which already holds five assets in the defensive healthcare property sector valued at R2.4 billion.

Two of its healthcare properties are operated by private healthcare provider Busamed, and one each by the Johannesburg Stock Exchange-listed healthcare players Mediclinic and Netcare. In addition, Netcare also rents 50% of the space in N1 City Medical Chambers, the medical suites adjacent to the N1 City Hospital.

The introduction of Growthpoint Healthcare has received strong market interest, the company says, with its first close attracting capital commitments of R285 million from third parties. It is expected to raise at least double that again in the next 12 months.

Growthpoint Healthcare will be managed by Growthpoint Management Services, aiming to grow it towards R10 billion in assets and a stock exchange listing.

The new property holding vehicle intends to invest exclusively in healthcare assets in South Africa occupied by licenced operators of hospitals, clinics, pharmacies and laboratories.

It also has a R750 million pipeline of hospital developments – the first being a new R450 million specialist hospital that will break ground this month. Another R300 million specialised facility is in advanced discussions.

Growthpoint provided R2.1 billion to acquire the starting portfolio, a portion of which has been converted into equity leaving Growthpoint as the anchor investor with an equity investment to R650 million on the first close date.

The remainder is a R1.4 billion loan to Growthpoint Healthcare, which will be settled over time as the company raises further capital. – Moneyweb