AXA, Grosvenor, Centuria team up for US$341m Australian healthcare fund

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AXA Investment Managers – Real Assets, the property arm of the French insurer, has entered the Australian healthcare property market through a A$500m (US$340.8m) joint venture with London-headquartered Grosvenor and Centuria.

Centuria Heathley, the Australian firm’s recently acquired healthcare property business, will manage the Australian Diversified Healthcare fund and grow its portfolio to A$500m in the near term.

The fund has been launched with the Mater Private Hospital in Townsville and the Westside Private Hospital in Brisbane as seed assets worth A$88m together, according to announcements.

The JV will invest in medical centres, day hospitals and tertiary aged care across the country.

“Healthcare ownership in Australia is highly fragmented with minimal securitisation of real estate, and we see the opportunity for AXA IM – Real Assets to become a leading institutional investor in the sector,” said Kumar Kalyanakumar, head of Australia at AXA IM – Real Assets.

“AXA IM – Real Assets recognises the attractiveness of this sector which is underpinned by demographic trends including Australia’s aging population and longer life expectancy, along with ongoing healthcare needs of the population and the focus of stakeholders on preventative and low-cost models of care in Australia.”

The agreement builds on AXA IM – Real Assets’ existing A$3.2bn global healthcare portfolio.

Centuria recently expanded into the healthcare space after acquiring a majority stake in healthcare property fund manager Heathley for A$24.4m in May this year. 

Centuria Heathley, which will have a minority stake in the JV, manages more than A$600m of healthcare assets including medical centres, day hospitals and tertiary aged care properties, with a further identified pipeline of $400m.

“The new ADHF venture represents the group’s largest institutional mandate to date and we intend to work closely with our new partners to grow the portfolio utilising Centuria’s transactions and property services team,” said Centuria joint CEO Jason Huljich.

“We are pleased to welcome AXA IM – Real Assets into the joint venture, which brings together like-minded investors and the right skill sets to create a successful long-term oriented healthcare portfolio,” said Andy Yates, investment director – indirect investment at Grosvenor.

AXA IM – Real Assets has €79bn in assets under management, including €59.8bn in direct property and infrastructure and €15.6bn in real asset finance.