Why Elanor is doubling down in healthcare real estate

Australia has a healthcare system that the rest of the world envies. From universal healthcare through Medicare to a swathe of initiatives like the NDIS and the PBS which have helped make the experience of getting sick a little more bearable. And despite the issues that continue to exist around ambulance ramping and staffing ratios, Australian hospitals are still among the world's best.

One of those hospitals, Sydney's Royal Prince Alfred Hospital, is the number one Australian hospital according to Newsweek's World's Best Hospitals list for 2024. It ranked 56th out of 2400 institutions, based on "an online survey of more than 85,000 medical experts and public data from post-hospitalisation patient surveys on their general satisfaction, hygiene and patient/doctor ratio as well as a survey on whether hospitals use patient-reported outcome measures."

The hospital's medical centre also happens to be the seed investment for the Elanor Healthcare Real Estate Fund II, the sequel to Elanor's first fund in that space, which returned 12% IRR over three years. Adam Lieutenant, Healthcare Investment Specialist at Elanor Investors Group, and the man behind this fund, says this asset perfectly represents what the team is scouting for.

"It's a perfect healthcare ecosystem and what you need is access to medical professionals which we've got because of its location. Two, we've got healthcare infrastructure at our doorstep. We've got the 1200-bed Royal Prince Albert Hospital, only 200 metres away. Three, we've got infrastructure on site where they've spent a high lot of capital for day surgeries, for preoperative, for radiology services and it's also got very easy access for our patients."

Best of all, it is - what Lieutenant describes as - "a deep value opportunity". 

In this Fund in Focus, Lieutenant gives us the details on Elanor Healthcare Real Estate Fund II and shares his thoughts on why healthcare real estate is a superior opportunity to other comparable ideas (like healthcare stocks for instance).

Timecodes

• 0:00 - Intro
• 0:26 - What do Elanor Investors Group do?
• 1:03 - Why are you launching a second healthcare fund and what demand are you seeing for it?
• 1:48 - What differentiates healthcare real estate as an opportunity compared to other healthcare investments?
• 3:06 - What does "deep value" mean in the context of the healthcare real estate market?
• 4:54 - What criteria do you use for scouting out the perfect investment opportunity?
• 5:29 - Share with us a previous success story.
• 6:06 - When do you expect this fund to underperform and outperform?
• 6:49 - Technical details and outro

Learn more

For further information on this investment opportunity please contact Fidante, Elanor’s distribution partner and member of the Challenger Group at capitalmarkets@fidante.com.au

Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante), a member of the Challenger Limited group of companies (Challenger Group), has been appointed to provide distribution services for Elanor’s real estate funds management business. Neither Fidante nor any Challenger Group entity is the issuer of the material and the information contained in it, and they are not responsible for, nor have they prepared or verified any of the material or information set out in this email and the material, including any statements of opinion. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. To the extent permitted by law, no liability is accepted by Fidante or any Challenger Group entity for any loss or damage as a result of any reliance on this information. Past performance is not a reliable indicator of future performance. Neither Fidante nor any member of the Challenger Group guarantees the performance of the strategy, any particular rate of return or the return of capital.