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Case Study | Evolution Healthcare

NZ_AucklandCBD_Communications_E22 Case Study Evolution Healthcare

Location

Asset Type

 Transaction date

Size

Value

New Zealand and Australia

Healthcare  23 May 2022

 
11 Private Hospitals

$100M+


Buyer: 
NZ Healthcare Bidco


Seller: 
Evolution Healthcare

Services provided: 
Real estate asset due diligence 

The Challenge
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. 

The Strategy
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 Solution

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

The Result

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.


Related Experts

Alan McMahon

National Director | Strategic Advisory

Auckland CBD

Alan has overall responsibility for Strategic Advisory for Colliers International in New Zealand. 

He advises a wide range of public and private sector organizations. Clients include Auckland Council,, Massey University, Kiwi Property, Ngai Tahu Property, Ngati Whatua Orakei, Ngati Whatua o Kaipara, NZ Super, and various departments of the New Zealand government including Police, MBIE, Ministry of Justice, and Kainga Ora.

 

 

 

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Renee Lintott

Senior Analyst | Strategic Advisory

Auckland CBD

Renee was the recipient of the Blair Hargrave/Colliers Scholarship in 2019 before joining the Strategic Advisory team as an analyst in the same year. Renee worked part time in the team for 2 years whilst completing her tertiary qualifications and joined full time in mid-2021.  She was promoted to the role of senior analyst in mid-2022.

Renee contributes to consulting assignments primarily through research, analysis, and reporting. Renee’s recent work with the Strategic Advisory team has included feasibility studies, complex financial modelling, asset and lease due diligence, demographic demand and competitor supply studies, and long-term property strategy. Renee also carries out market research, data extraction, and bespoke site searches using geographical information systems.
 

View expert