Australian Unity’s Healthcare Property Trust reaches financial close on new $1 billion debt facility

17 December 2021

Tags: Media

Australian Unity’s $3 billion Healthcare Property Trust (AUHPT) has refinanced its debt facility to $1 billion to support and advance its significant pipeline of acquisitions and developments.

Australian Unity’s $3 billion Healthcare Property Trust (AUHPT) has refinanced its debt facility to $1 billion to support and advance its significant pipeline of acquisitions and developments.

The $1 billion senior, now unsecured debt facility replaces the existing $850 million facility and increases the funding diversity of AUHPT, with four new financiers, bringing the total number of financiers to seven—including ANZ, CBA, NAB, Bank of China, Mizuho Bank, HSBC and AustralianSuper.

It also provides AUHPT additional financing capacity with more flexible terms and improved credit margins, resulting in lower interest costs and therefore higher distributions for investors.

The debt facility provides AUHPT with material committed capital to support its current $1.2 billion+ pipeline of healthcare property acquisitions and developments. Proceeds from the refinance were used to repay debt drawn under the previous bank facilities that were not due to mature until January 2023.

Louise Cahill-Mulvogue, General Manager – Strategy & Support at Australian Unity Property, said the debt platform is structured to facilitate access to new debt markets, reflecting AUHPT’s maturity and growth aspirations.

“Adopting this new unsecured borrowing structure is a critical step in AUHPT’s growth strategy and is structured to facilitate access to longer term tenor debt capital markets in the future. The increase in the weighted average tenor of debt facilities also provides a smoother maturity profile to reduce future refinancing risk.”

“The new debt facility is a testament to the high quality healthcare assets that make up the $3 billion AUHPT portfolio,the value of our acquisition and development pipeline and the strong financial position of AUHPT following the equity raising conducted earlier this year.”

“It reflects the strong confidence of lenders in supporting AUHPT as a mature, high quality borrower in the healthcare property sector, which has proven its resilience through the COVID-19 pandemic.”

Mark Pratt, Executive General Manager – Property, said the new debt facility will lay a strong foundation for the healthcare property trust’s acquisitions and developments in the short-to-medium term.

“Investor confidence in quality healthcare property is showing no sign of abating and we are delighted to see an increasing number of opportunities presenting for AUHPT investors as operators of hospitals, medical centres and aged care facilities look to trusted operators like Australian Unity to develop new, or expand existing properties,” he said.

Legal support was provided to AUHPT by King & Wood Mallesons and the financier group were advised by Gilbert & Tobin.

The Healthcare Property Trust continues to deliver on its objective to provide investors consistent and sustainable income returns, together with the opportunity for long-term capital growth. For the 12 months to 30 September 2021, AUHPT delivered a total return of 36.50%, its three-year total return was 17.90% pa and over five years the total return was 16.43% pa . In October, AUHPT was named Lonsec’s Property and Infrastructure Fund of the Year.

AUHPT currently owns a portfolio of 68 high-grade healthcare assets, including hospitals, medical clinics, aged-care facilities, day surgeries, medical offices, consulting rooms, rehabilitation units, radiology and pathology centres.

Media Contact:

Penny Bold – 0400 567 937

About Australian Unity

Established in 1840, Australian Unity is a member-owned wellbeing company with 400,000 members and more than 700,000 customers. Our range of health, wealth and care products and services provides member, customer and community value that is supportive of personal and community wellbeing.

Related article

Australian Unity increases ownership stake in Platypus Asset Management

Australian Unity Investments Strategic Holdings Pty Ltd (AUISH), a subsidiary of health, wealth and care group Australian Unity Limited (AUL), has entered into agreements to acquire the majority of the issued share capital from the founders of Australian equities boutique Platypus Asset Management (PAM).

Australian Unity - Investments appoints portfolio manager for new strategic healthcare initiative

Australian Unity has appointed Victor Windeyer to lead the development of a new and innovative healthcare investment focused initiative in its funds management business.

Australian Unity - Investments appoints portfolio manager for new strategic healthcare initiative

Australian Unity has appointed Victor Windeyer to lead the development of a new and innovative healthcare investment focused initiative in its funds management business.

North Blackburn Shopping Centre Redevelopment commences

Construction commenced yesterday on stage one of the much-anticipated ~$60 million re-development of North Blackburn Shopping Centre.