The Australian Financial Review, 16 March, 2006. Fund picks up Ramsay hospitals BEN WILMOT Hospitals have grabbed the attention of more property players and major institutions are already jockeying for position. Property fund manager SAITeysMcMahon last week settled on a $88 million portfolio of private hospitals bought from Ramsey Healthcare...
	Interest in private hospitals is strong at present.

Smaller property player Australian Public Trustees and private operator Owen Ferguson Health were shortlisted to bid for the Ramsey hospitals.

Although APT missed out on the hospitals it is now focusing on backing the development of new health facilities, rather than committing its equity to older facilities like the Ramsay hospitals, which may have ongoing maintenance risk.

Last week it bought Lismore Private Hospital in north-eastern NSW for $8 million, from Owen Ferguson Health.

Lismore Private will provide 66 in-patient beds and 30 rehabilitation day beds. Construction is due to be completed in mid-2007.

The hospital will be leased to hospital operator Owen Ferguson Health for 10 years with two options for a further five years each. Initial rental yield is 10.5 per cent.

APT chief executive Darren Olney-Fraser said: “This exciting purchase is an important step in growing our Health and Aged Care Trust, and takes overall assets held by APT to approximately $150 million.”

APT bought the Canada Bay Private Hospital in Sydney with Owen Ferguson Health in 2005 for $3.5 million.

APT is also moving into the aged care sector through an alliance with Pinnacle Living, a specialised property developer, focused on retirement villages, nursing homes and hospitals. Pinnacle is already developing the Tudor Village at Lilydale in Melbourne.