Singapore's IHC makes first Australian acquisition

The international interest in Australia's commercial property market has continued with Singapore's International Healthway Corporation making its first foray into the country with the purchase of a Melbourne building for $45 million.    

In a statement, the integrated healthcare services and facilities provider said it had "signed a contract of sale" for the acquisition of 553 St Kilda Road in Melbourne and that the purchase marked the beginning of its portfolio diversification into Australia.  

Dr Jong Hee Sen, executive chairman of IHC said: "Diversifying into attractive and large economies in the Asia-Pacific region such as Australia, has been a key growth strategy since our listing in July 2013."

"IHC continually sources for attractive opportunities to expand our involvement in medical real estate, healthcare-related assets, integrated mixed-use developments, as well as healthcare services, to increase future income and enjoy capital growth prospects.  

"With Victoria being one of the most populous states in Australia, we are pleased to begin our expansion into Australia in this vibrant state.” 

The seven storey building is fully leased and is located on a 3,044 square metre site and it has a net lettable area of 10,170 square metres.  

 Dr Jong Hee Sen added that IHC plans to reposition the property over the next few years.

"With the rising healthcare demands of the ageing population in Australia, 553 St Kilda Road will complement and create synergies to the existing medical services provided in the surrounding vicinity," he said.

The property is located next to the Alfred Hospital.