Global asset manager Aberdeen Standard Investments is tapping into the growth of medical tourism in the UK and pioneering medical technology with a £40 mln (€45 mln) Harley Street real estate investment.
The Standard Life Investments Long Lease Fund has bought the freehold of two buildings at 95-97 Harley Street in London’s Marylebone medical care district from Anglo Suisse Investments.
The adjoining period buildings are spread over five floors. Number 97 is Grade II listed and was constructed in 1777, whilst number 95 was built in the late 1800s. Both properties were recently refurbished to provide cancer treatments at the cutting edge of medicine.
Both buildings are let on long-term leases until 2040 and are guaranteed by HCA International, which forms part of the world’s largest private hospital group.
'Harley Street has become a centre of global medical expertise and the growth in private medical tourism has allowed many facilities there to invest in the latest technology and pioneering medical techniques,' said Richard Marshall, fund manager of the Standard Life Investments Long Lease Fund. 'As a result, real estate here has performed differently compared to other central London office locations with much less volatility over the economic cycle.'
The deal was an 'exceptionally rare' opportunity to buy two prime, period freehold properties on the street, added Marshall. 'The transaction offers the Long Lease Fund diversification into the healthcare sector and suits its strategy of acquiring prime assets in strong locations, let to good covenants on long leases. It also increases our exposure to alternative sources of income and new trends in real estate.'
CBRE represented the Standard Life Investments Long Lease Fund and Vanhan represented Anglo Suisse Investments.
