Centuria Acquires $44.6M Healthcare Portfolio in Coffs Harbour and Cairns, Expanding CHPF to 10 Assets

Centuria has completed a $44.6 million real estate acquisition of two healthcare properties across the eastern seaboard of Australia, adding the Coffs Harbour Specialist Centre in New South Wales and the Cairns Day Surgery in Queensland to its unlisted open-ended Centuria Healthcare Property Fund (CHPF).

The transactions bring CHPF's portfolio to 10 assets with a combined value of $219.9 million, according to the firm's announcement. The fund maintains 100% occupancy across its portfolio, with a weighted average lease expiry (WALE) that has increased to 6.4 years following the acquisitions.

Real Estate Development Context and Asset Details

The larger of the two acquisitions is the Coffs Harbour Specialist Centre, a three-level, approximately 3,400-square-metre property located at 343 Pacific Highway within the Coffs Harbour health precinct. Purchased for $23 million, the asset is anchored by the NSW Government's Mid North Coast Local Health District (MNCLHD). The property sits adjacent to a major regional public hospital currently undergoing a $194 million real estate development expansion.

The second asset, the Cairns Day Surgery, was acquired for $21.6 million. The two-level, approximately 2,470-square-metre short-stay hospital is located at 156-160 Grafton Street in Cairns, QLD, and is anchored by Ramsay Health Care. The facility is situated within proximity of both the Cairns Hospital (public) and Cairns Private Hospital.

No cap rate, price per square metre, year of construction, or financing terms were disclosed in connection with either transaction.

Since We Launched CHPF: Fund Growth and Investor Demand

Andrew Hemming, Centuria Healthcare Managing Director, commented on the fund's trajectory since its inception. "Since we launched CHPF in late August 2020, investor appetite has been strong," Hemming said. "The Fund is continuing to expand its portfolio, which is aligned with our strategy to secure modern, purpose-built assets that lend themselves to efficient and effective models of care."

Hemming added: "These new transactions align to our strategy, enabling us to deliver monthly income returns to our investors. Our last capital raise before Christmas saw the fund substantially oversubscribed. Needless to say, our focus remains on meeting investment demand for high-quality healthcare assets."

Since its launch, CHPF has raised $107 million in total equity. The fund has already generated a bookbuild of approximately $22 million for its third equity fundraise, and its November/December 2020 raise was oversubscribed. CHPF carries a target distribution rate of 5.75 cents per unit for FY21, with the potential for capital growth, though the firm notes the target is not a forecast and actual returns may differ.

Centuria Healthcare Portfolio Reaches $1.0 Billion AUM

The acquisitions contribute to a broader milestone for Centuria Healthcare, whose total portfolio across Australia has reached $1.0 billion in assets under management. CHPF itself now accounts for $219.9 million of that figure across its 10-asset portfolio.

The fund's strategy centers on modern, purpose-built healthcare facilities leased to government entities and established healthcare operators — a profile that has historically supported stable occupancy and long lease terms. The Coffs Harbour and Cairns assets reflect that approach, with anchor tenants including a state government health district and one of Australia's largest private hospital operators.

At the group level, Centuria reported record assets under management of $21.8 billion as of its HY26 results in February 2026, reflecting a 6% year-over-year increase. The group executed approximately $0.5 billion in real estate acquisitions during that period and upgraded its FY26 operating earnings per share guidance by 11.5% to 13.6 cents.

Past Performance Real Estate Considerations and Fund Metrics

As with all unlisted fund vehicles, past performance real estate metrics provide context but carry important caveats. Centuria notes in its disclosures that past performance is not a reliable indicator of future performance, and that distributions are subject to declaration by Centuria Property Funds No. 2 Limited.

Available performance data for CHPF through late February 2026 shows income returns have remained relatively stable, with a one-year income return of approximately 4.04%. However, growth returns have reflected valuation softness across the broader unlisted healthcare property sector, with a three-year annualized growth return of approximately -14.74%. Total returns over the same period were approximately -11.26% to -11.95% annualized. Since inception in September 2020, total returns have ranged from approximately -2.54% to -3.01%.

The fund's open-ended structure, daily unit pricing, and monthly income distributions have been cited as features supporting investor demand, even as withdrawal requests in certain quarters have exceeded the fund's $10 million annual redemption cap. As of January 2026, CHPF's fund size stood at approximately $233.5 million, with a unit price of $0.6694 as of March 2026.

Centuria Property Funds No. 2 Limited does not guarantee the performance of CHPF, the repayment of capital, or any income or capital return, according to the firm's disclosures.

Strategic Positioning in Healthcare Real Estate

The acquisitions reflect continued deployment into healthcare real estate, a sector that has attracted investor interest for its defensive characteristics, including long lease terms, government and institutional tenancy profiles, and proximity to established health infrastructure. Both the Coffs Harbour and Cairns assets are located within established health precincts, with the Coffs Harbour property benefiting from the adjacent $194 million hospital development underway nearby.

Centuria's broader group expansion — which drew more than 2,100 new private investors in 2025 — has positioned unlisted healthcare funds as a core component of its platform strategy. CHPF's oversubscribed fundraising history and ongoing bookbuild activity suggest continued investor interest in the vehicle, though macroeconomic conditions and valuation pressures in the broader commercial real estate market remain relevant considerations for prospective investors.

Sources

Centuria: Centuria Secures Pair of Healthcare Assets