AXA's real estate arm has invested in the healthcare sector in Australia through a joint venture with property firm Grosvenor Group and Centuria Heathley.
AXA IM - Real Assets enters the joint venture with the aim of capitalizing on more high quality opportunities in the Australian healthcare real estate sector to create a diversified A$500 million ($340m) portfolio in the near term.
According to the fund manager, the attractiveness of the Australian healthcare sector is underpinned by demographic trends such as the country's ageing population and longer life expectancy.
Through this strategic venture, AXA IM - Real Assets will be able to partner with Centuria Heathley and assist in providing purpose built, high quality real estate solutions for healthcare operators across Australia"
Axa IM's two seed assets, which set the foundation for this healthcare venture, are the Mater Women's & Children's Hospital in Townsville and the Westside Private Hospital, a multi-tenanted private hospital in the inner-western suburbs of Brisbane.
As part of the arrangements, Centuria Heathley Limited will originate and manage delivery of assets, and assist in driving asset management. Centuria Heathley currently manages Australian assets across the spectrum of healthcare segments including medical centres, day hospitals and tertiary aged care while having established strategic relationships with specialist healthcare operators. This is further aligned by Centuria Heathley retaining a minority stake in the Joint Venture.
This transaction enables AXA IM - Real Assets to expand its real assets platform in Australia into the healthcare sector whilst building on its existing global Healthcare expertise and portfolio of A$3.2 billion.
Kumar Kalyanakumar, Head of Australia, at AXA IM - Real Assets, said: "Our strategy is to continue to invest on behalf of clients in alternate real asset sectors in Australia. This is driven by our conviction on the long term fundamentals of the alternate sectors as well as our global and local experience which allows us to execute and drive value in these sectors"
"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. AXA IM - Real Assets recognises the attractiveness of this sector which is underpinned by demographic trends including Australia's ageing 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.
"Through this strategic venture, AXA IM - Real Assets will be able to partner with Centuria Heathley and assist in providing purpose built, high quality real estate solutions for healthcare operators across Australia."