Australian Unity Healthcare Property Trust capital raise

07 March 2023

Tags: Media

Australian Unity’s $3.8 billion Healthcare Property Trust (AUHPT)—the largest unlisted healthcare REIT in the country—will re-open on Monday 6 March for a limited period to seek to raise approximately $350 million to provide funding for upcoming acquisitions and developments and to strengthen its balance sheet by reducing gearing.

The Fund, which launched 24 years ago with a portfolio of four hospitals valued at $70 million, today has more than 10,000 investors and owns 98 healthcare-related assets across Australia.

The offer will include a $150 million non-renounceable rights issue offer to existing investors and a $200 million general offer for new investors. Existing investors who have taken up their full entitlement under the rights issue offer will have an opportunity to apply for any amount not taken up under the rights issue offer to the extent that they would not exceed their percentage ownership of AUHPT through this excess offer.

Key dates:

  • Rights issue offer and general offer:
    • opens on Monday 6 March 2023, and
    • closes on Friday 31 March 2023.
  • Excess offer:
    • opens on Monday 24 April 2023, and
    • closes on Friday 12 May 2023.

Chris Smith, General Manager—Healthcare Property said the Healthcare Property Trust is focused on its investment objective to provide long-term, stable income for investors, with the opportunity for capital growth.

The capital raise will strengthen the Fund’s balance sheet to provide funding for upcoming acquisitions and developments” he said. “Some of the capital will initially be used to reduce the fund’s gearing ratio which, assuming a successful raise, will decrease from 30.5 per cent to ~21 per cent.

“In line with the Trust’s active management, 37 of its properties were independently valued in February, resulting in a net increase of $29 million (or 3.6%) from the properties’ prior book value.

“This result highlights the resilience of the portfolio with quality healthcare properties historically coming into their own during periods of economic uncertainty, Mr. Smith said.

“There is a scarcity value that comes with investing in the Fund’s top-grade portfolio—it enjoys a very high 98% occupancy and its weighted average lease expiry is 16.4 years, he said.

Esther Kerr-Smith, Chief Executive Officer—Wealth & Capital Markets, said the strong, ongoing interest from investors is a demonstration of Australian Unity’s role as a leader in healthcare and social infrastructure investment.

“Data shows that while Australians enjoy one of the highest life expectancies in the world, we are also living with increasing levels of chronic disease which is placing never-before-seen demand on already stretched healthcare systems.

“Through investment vehicles like the Healthcare Property Trust, we’re enabling Australian investors to own the critical healthcare and social infrastructure assets that address the key social and health challenges facing us all,” she said.

-ENDS-

Related article

Australian Unity’s sustainable cash and fixed interest manager Altius Asset Management to be acquired by Australian Ethical

Australian Unity’s Wealth & Capital Markets platform (W&CM) announced today it will sell its circa. $2 billion sustainable cash and fixed interest manager, Altius Asset Management (Altius) to Australian Ethical (ASX: AEF).

Read more

Australian Unity appoints Darren Dawson as General Manager, Social Infrastructure Funds

Australian Unity has appointed experienced sustainable finance and ethical investment executive, Darren Dawson, as its General Manager, Social Infrastructure Funds.

Read more

Perennial Partners to take over management of Australian Unity’s Future of Healthcare Fund

Perennial Partners (Perennial) and Australian Unity Funds Management Limited (AUFM) are pleased to announce that they have entered into agreements to transfer the investment management rights of the Australian Unity Future of Healthcare Fund (Fund) to Perennial.

Read more

Australian Unity named Roy Morgan’s private health insurer of the year

Australian Unity has been named winner of the Roy Morgan Customer Satisfaction Award for Private Health Insurer of the Year (Retail) 2023.

Read more