Malaysia’s PNB Supports Elanor Healthcare Fund | Popgen Tech
Australia’s Elanor Funds Management has reportedly received help from Malaysian asset manager Permodalan Nasional Berhad to complete the A$289 million ($214 million) recapitalization of the Elanor Healthcare Real Estate Fund.
The capital injection will provide a full liquidity event for investors in the fund and allow Elanor to expand its six-asset portfolio of healthcare properties across Australia, according to a statement on Tuesday by property consultancy JLL, which advised Sydney-based Elanor on the transaction.
JLL said that the recapitalization was completed in partnership with an “institutional real estate investor based in Asia”. The Australian Financial Review and other media sources identified the partner as Kuala Lumpur-based PNB.
“Institutional investors see vast potential in Australia’s healthcare sector and the real estate assets needed to support demand for evolving services,” said Luke Prokuda, head of the JLL’s equity consultancy for Australia. “JLL is pleased to have advised Elanor on facilitating further expansion in their healthcare portfolio and enhancing the attractiveness of the fund to a wider range of international and domestic investors.”
Six to Grow On
Elanor established the property fund in March 2020 with the aim of providing wholesale investors direct access to income generating healthcare real estate assets in Australia. Since inception, the fund’s portfolio has grown to include six assets with a cumulative value of A$289 million.
The vehicle’s assets include 55 Little Edward Street in Brisbane, a multi-tenant medical office and day surgery with 8,302 square meters (89,362 square feet) of net lettable area and an occupancy rate of 98 per cent, and Pacific Private in Gold Coast, seven. -level medical office and day surgery with 7,946 square meters of NLA and an occupancy rate of 85 percent.
The fund was recapitalized at a weighted average portfolio capitalization rate of 5.1 per cent, with the partnership establishing a new core mandate to invest in Australia’s healthcare real estate sector, he said JLL.
The consultancy has advised on more than A$1 billion ($675 million) of fund recapitalizations with an equity value of more than A$500 million in the past 12 months, it said.
PNB, which as of 2021 manages assets worth MYR 336.7 billion (now $76 billion), concentrates most of its real estate investment in Malaysia, including with skyscraper development Its Merdeka 118 in Kuala Lumpur.
At 678.9 meters (2,227.4 feet), the 118-story mixed-use tower is expected to become the second tallest building in the world (after Dubai’s Burj Khalifa) upon completion in -2023.
The Malaysian asset manager also has a history in Australian real estate, once owning the 41-storey Santos Place office tower in Brisbane. PNB sold the building to Singapore sovereign wealth fund GIC and Aussie fund manager Charter Hall for A$370 million ($281 million) in 2017.