Queensland Investment Corporation (QIC) and Australian superannuation fund Sunsuper have agreed to acquire Evolution Healthcare, the second-largest corporate hospital platform in New Zealand, from private equity group Pacific Equity Partners.

Neither QIC nor Sunsuper would disclose the price paid, but IPE Real Assets understands it to be more than A$700m (€443m).

Evolution has a network of 10 hospitals as well as ancillary healthcare facilities in New Zealand, and one private hospital in Australia. 

QIC is investing on behalf of the QIC Global Infrastructure Fund. Ross Israel, QIC’s head of global infrastructure, said Evolution was attractive because it was not heavily exposed to Auckland, where most COVID-19 lockdowns were.

Israel told IPE Real Assets that underspending in New Zealand’s public health sector provided Evolution with an opportunity to grow. A number of Evolution hospitals are already expanding their operating theatres.

QIC already owns Australian hospitals business Nexus, which Israel said provided QIC with a “deep sectoral understanding” and the ability to assemble a “differentiated robust” business plan for Evolution.

Evolution is Sunsuper’s first healthcare asset. Michael Weaver, head of private markets at Sunsuper, told IPE Real Assets that the A$96bn superannuation fund had a “material stake” in the asset and would take a strong governance role.

“From our perspective, we like the long-term thematic of the healthcare sub-sector,” he said. “Evolution represents a strong platform from which to leverage the sector thematics around ageing demographics – and technology and medical innovation.”

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