Leading wealth manager Atlas Advisors Australia has become the major external investor in Elanor's A$88.11 million Burke Street Real Estate Fund, which has a major investment in healthcare assets.
Executive Chairman of Atlas Advisors Australia, Guy Hedley said Atlas was now the largest co-investor in Elanor's Burke Street Real Estate Fund as well as Elanor's Healthcare Real Estate Fund.
"Atlas Advisors Australia's strategy is to continue seeking opportunities for high quality commercial healthcare real estate assets with secure, long-term tenancies in established health precincts," Mr Hedley said.
"The Burke Street Real Estate Fund has all these attributes, promising our investors strong long-term rental growth and capital value appreciation."
The Burke Street Real Estate Fund is made of two fully occupied A-Grade premises that comprise the Princess Alexandra Hospital Burke Street Centre, in Brisbane, Queensland.
The premises at 2 Burke Street and 163 Ipswich Road, Woolloongabba includes:
- QLD Health Building: Located at 2 Burke Street, Brisbane. The building is occupied by the Queensland Government on a seven-year lease until to June 2025. It has occupied the purpose-built facility since it was completed in 2006;
- Catholic Education Building: Located at 163 Ipswich Road. The premises is occupied by the Catholic Church Archdiocese of Brisbane on a ten-year lease until November 2029. The Archdiocese occupied the building following a major refurbishment in 2019.
Mr Hedley said QLD Health Building offered potential for expansion and was subject to a current development approval for sub-division into two lots.
There is opportunity to extend the existing building or construct a new premises as well as the potential to expand the site by amalgamating it with adjoining sites for a larger expansion development.
"While other areas of commercial real estate face headwinds, we believe demand for health care services will continue to increase in line with the needs of an aging population and the rising prevalence of chronic disease," Mr Hedley said.
"The low volatility and high growth of the sector means real estate assets in health care will undoubtedly remain at a premium."
Atlas Advisors Australia is also the major investor in the Elanor Healthcare Real Estate Fund which is comprised of two high quality healthcare real estate assets:
- 55 Little Edward Street, Spring Hill, Brisbane: A multi-tenanted medical office and day surgery; and
- Pacific Private, Southport, Gold Coast: A multi-tenanted medical office and day surgery providing a broad range of clinical services in a prime health precinct.
