4 December 2023

Following the completion of a $49.3 million equity raising, KM Property Funds is pleased to announce the successful acquisition of the Epping Hospital and Medical Centre (Property), a significant milestone made possible by the robust support of our investors and financial advisers.  

Chief Investment Officer Mario Papaleo said: "We are excited about acquiring the Epping Hospital and Medical Centre. The Property provides investors diversified exposure to leading public and private healthcare practitioners, including Northern Health, Genesis Care, i-Med, Melbourne Pathology, and the Family Doctor network. The robust fundamentals of the healthcare sector support the long-term need for the services provided at this facility, which services the growing population within one of Melbourne's fastest growth corridors."  

Key Highlights: 

• Strategic acquisition: KMPF Epping Healthcare Fund (Fund), representing a diverse group of investors, including high-net-worth individuals and self-managed superannuation funds, has secured the Epping Hospital and Medical Centre.
• Prime location: Situated at 230 Cooper Street, Epping, Victoria, and only 18 km from Melbourne's Central Business District (CBD), the Property is strategically located within a significant healthcare and medical research precinct.
• Diverse healthcare offering: The Property, fully leased to major tenants including Northern Health, Genesis Care, i-Med, Melbourne Pathology, and a family doctor clinic, boasts a weighted average lease expiry (WALE) of 8.7 years, providing a stable and secure income stream.
• Financial success: Acquired at a purchase price of $76.0 million, it is well below the replacement cost. The investment offers investors forecast distribution yields of 6.3% to 6.4% in FY24 and FY25, respectively, and targets an IRR (Internal Rate of Return) of 13.5% per annum.

Chief Executive Officer Tom Davis said: "At KM Property Funds, creating unique investment opportunities for our investors drives our vision. The acquisition of the Epping Hospital and Medical Centre is a testament to our strategic approach and the confidence our investors place in us. We look forward to unlocking the full potential of this Property and continuing to build on our success in the commercial property sector." 

Next Steps: 
We invite investors and interested parties to explore new opportunities in the commercial property sector by contacting our team at 1300 132 099 or [email protected] for detailed information. 

Media inquiries
For media inquiries or further details, please contact Mario Papaleo, Chief Investment Officer, 
at +61 3 9908 8902. 

About KMPF Epping Healthcare Fund
The Fund has acquired the Epping Private Hospital and Medical Centre at 230 Cooper Street, Epping. The Property is approximately 18 km from the Melbourne CBD, opposite the Northern Hospital in Epping, one of Melbourne's most prominent public hospitals, in a rapidly growing medical precinct. The Property is 100% leased with an 8.7-year WALE as of 1 December 2023. Operators within the Property provide public and private health care services, and the significant tenants include Northern Health, Genesis CBD Care,  i-Med, Sonic Healthcare (trading as Melbourne Pathology), Family Doctor, and DPV Health. 

The Property offers public and private healthcare services, including a publicly operated women's health and fertility clinic, allied health, specialist medical services and general practice. The Property is a modern, high-quality facility constructed in 2009, with a further $12 million investment in the hospital fit-out in 2018. It is strategically located opposite the Northern Hospital in Epping, one of Melbourne's most significant public hospitals, in a rapidly growing medical precinct. It provides substantial renewable energy with a 500kW solar array installed in 2021, rainwater harvesting, and social benefits from essential healthcare services.