New Zealand and Australia
|23 May 2022
Buyer: NZ Healthcare Bidco
Seller: Evolution Healthcare
Services provided: Real estate asset due diligence
In 2021, Queensland Investment Corporation (QIC), a key owner of NZ Healthcare Bidco, appointed the Colliers Strategic Advisory team to complete real estate asset due diligence, to support the corporate acquisition of Evolution Healthcare. Evolution Healthcare is the second-largest corporate hospital platform in New Zealand. The complexity of the project was such that QIC engaged with multiple external advisors. The project was also highly confidential and fast-paced.
Strategic Advisory’s consulting focused on providing detailed insights for each healthcare asset that QIC could use to support its decision making. A key focus was highlighting any risks and opportunities associated with each asset. This included reviewing more than 100 complex documents in detail.
The Strategic Advisory team used their expertise to produce a consulting report that incorporated various issues including:
• Asset and lease due diligence for 10 properties in New Zealand and one in Australia. This included an in-depth review and summary of each lease, seismic assessments, and development agreements
• Demographic profile and demand analysis for each asset within specific catchment areas using innovative technology such as QGIS
• Existing and future competitor supply analysis for each asset within specific catchment areas using innovative technology such as QGIS
• Providing insights and identifying risk areas within the healthcare sector, including barriers to greenfield developments, rents, development returns, and the occupancy status of comparable assets
Using the advice produced by Strategic Advisory, NZ Healthcare Bidco successfully acquired Evolution Healthcare for more than $100 million. The Overseas Investment Office decision on the sale was finalised in May 2022. The Strategic Advisory team were pleased to help QIC achieve its goals, after a competitive process with multiple interested buyers.
Interested in finding out more about our Strategic Advisory services? We offer a comprehensive range of services to help clients make big real estate decisions.