Growthpoint Properties, South Africa’s largest real estate group, says it is on track to grow its health-care fund nearly fourfold to R10bn in the next five to seven years, through acquisitions and management contracts. The company’s South African CEO, Estienne de Klerk, is quoted in Business Day as saying that the health-care fund had been more successful than expected and it may consider listing it when there is a recovery in the economy. His team would also be prepared to work with the state to upgrade and expand government hospitals and medical facilities, he said.
The fund is designed to co-own hospitals and also to provide property management to hospitals owned by other companies, for fees. “The interest from investors and hospital groups who want to partner with us has been greater than we anticipated. It’s an interesting asset as it operates like a mix of hotels and offices and can have industrial aspects too,” he said.
Two of the fund’s health-care properties are operated by private health-care provider Busamed, and one each by JSE-listed Mediclinic and Netcare.Full Business Day report