has finalised the acquisition of the Johannesburg Eye Hospital in Northcliff, Randburg, for R106.4 million, marking the addition of the ninth asset to its portfolio and the second specialist healthcare facility.
Renowned as a leading specialist eye hospital in South Africa and possibly across Africa, the Johannesburg Eye Hospital boasts a 20-year legacy. Its services range from eye surgery to laser procedures, complemented by the Medwedge Stepdown Facility.
Growthpoint Healthcare Property focuses its investments on licensed healthcare facilities including acute, day, and specialist hospitals, along with laboratories and biotechnology entities like pharmaceutical manufacturing and warehousing facilities.
Growthpoint Healthcare REIT manages assets worth R3.8 billion. Despite a period of stagnant growth due to the COVID-19 pandemic's impact on the healthcare sector, the REIT is now well-capitalized.
“While there is an oversupply of private acute and multidisciplinary medical facilities in several areas, there is still a real need for specialist healthcare facilities,” said Dr Linda Sigaba, fund manager of Growthpoint Healthcare REIT.
These include sub-acute and stepdown facilities as well as those catering to mental wellness, oncology, urology, and cardiology, among others.
“South Africa certainly needs more healthcare properties, and whether operated by the public or private sector, Growthpoint Healthcare REIT is positioned to support the healthcare sector in meeting the needs of South Africans,” he said.
The REIT's objective is to acquire and develop healthcare properties, whether through constructing new facilities, expanding or upgrading existing ones, or acquiring properties to provide operational and growth capital for their operators.
Currently, the REIT's portfolio comprises a pharmaceutical warehousing and distribution facility, a medical chambers property, and seven hospitals, all managed by long-lease medical providers.
Growthpoint Healthcare REIT aims to distribute at least 90% of its distributable earnings to investors and targets gross ungeared total returns between 13 and 16% annually.
It maintains a low loan-to-value ratio of 17% and may pursue a listing in the future to provide significant liquidity to investors.
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