Centuria Healthcare’s $64 million new hospital development partnership announcement sees shares moving up…then down.
The post What’s happening with the Centuria (ASX:CNI) share price today? appeared first on The Motley Fool Australia. –
The Centuria Capital Group (ASX: CNI) share price was up 1% in early morning trade before retracing. At the time of writing, the Centuria share price is up 0.63%.
Centuria is listed on the S&P/ASX 200 Index (ASX: XJO) and is currently trading for $2.38 per share.
We take a look at the latest announcement from Centuria Healthcare, a subsidiary of Centuria Capital, below.
What did Centuria Healthcare announce to the market this morning?
Centuria’s shares are moving today. This comes in light of the company reporting that its Healthcare subsidiary has partnered with a joint venture (JV) to deliver a new private hospital. Furthermore, the $64 million short-stay facility will be developed in Kew, Melbourne.
The JV consists of 42 specialist doctors along with Medibank. Centuria Healthcare reported it will also own the asset. In addition, the company reports that the JV has committed to a 15-year lease term.
Comments from the managing director
On the partnership, Andrew Hemming, Centuria Healthcare managing director, said:
We are delighted to partner with the joint venture doctors and Medibank to develop and own the real estate delivering this new short-stay surgical facility. This is a transformative project that can change the landscape of the healthcare sector and we are pleased to be the real estate partner of this forward-thinking project.
Hemming also added that the project aligns with Centuria Healthcare’s strategy “to partner with top-tier operators backed by secure lease covenants”.
Centuria Healthcare currently has around $1 billion of modern healthcare real estate assets across Australia.
However, the new hospital development remains subject to obtaining the standard licensing and planning approvals.
Centuria share price snapshot
Over the past 12 months, Centuria’s shares have gained 16%. That compares to a 36% gain on the ASX 200.
Year-to-date the Centuria Capital share price is down 8%.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.