Australian Unity’s Healthcare Property Trust strengthens portfolio with $220 million South Australia residential aged care property acquisition

12 December 2022

Tags: Media

Australian Unity’s Healthcare Property Trust (AUHPT) has acquired the land and residential aged care buildings at nine sites in South Australia from leading residential aged care provider, Bolton Clarke for $220 million.

The nine assets will continue to be operated by Bolton Clarke under a minimum 20 year lease back arrangement.

Eight of the nine properties are located in metropolitan Adelaide with one located in Victor Harbor — increasing AUHPT’s total exposure in South Australia to 11 sites. The newly acquired aged care properties comprise 95% single rooms and are located in densely populated catchment areas with ageing demographic profiles.  

The acquisition is in line with AUHPT’s investment strategy and further diversifies the $3.6 billion portfolio which comprises 58% hospitals, 24% medical centres, and 18% aged care properties across Queensland, New South Wales, Victoria, South Australia, and Western Australia.

The minimum 20-year lease agreement for the nine properties provides AUHPT investors with an overall commencing rent of $12.1 million and a starting income yield of 5.49% (pre-acquisition costs). The size of the land holding is approximately 115,000 square metres with an estimated land value of $57.5 million.

Chris Smith, General Manager-Healthcare Property, Australian Unity, said the acquisition supports AUHPT to deliver its investment objective by investing in diverse, high-quality, income-producing healthcare-related properties.

“In as little as five years, some 60,000-80,000 Australians will turn 80 every year. Given the strong macro-economic drivers, population shifts, and alignment with our existing portfolio, fit-for-purpose aged care properties present important opportunities for investors in AUHPT,” Mr Smith said.  

“The quality of the assets and the secure, long-term lease arrangements will provide investors a compelling, long-term income stream through to November 2042.”

Stephen Muggleton, CEO, Bolton Clarke Group, said the partnership with Australian Unity was important to the business’ long-term focus on growing its services to meet the needs of ageing Australians.

“We are pleased to have developed this agreement with Australian Unity’s Healthcare Property Trust — an experienced and trusted manager with a successful track record of similar arrangements with other aged care providers.

“Our long-term focus has been on growing our services to meet the needs of ageing Australians. This is an innovative way we can accelerate this growth. It enables us to expand much-needed aged care services into high-demand locations and invest in our capital works development pipeline,” Mr Muggleton said.

“Importantly, there will be no change as a result of this agreement for our residents and employees or the services we provide in South Australia - it will continue to be business as usual at all locations.”

Dr Joe Fernandes, Chief Investment Officer and Executive General Manager, Funds Management, Australian Unity, said the AUHPT continues to showcase genuine investment leadership.

“For more than two decades, the Trust has delivered superior investment outcomes to investors while directing capital towards positive social impact by funding much-needed community infrastructure”, he said.

The unlisted healthcare property trust now owns 22 aged care properties with a combined 2,788 beds located in Queensland, New South Wales and South Australia, adding diversification to the aged care property component of its growing portfolio.  

In November, AUHPT increased its debt facility from $1 billion to $1.3 billion to provide the Trust with additional capacity for its circa $1 billion acquisition and development pipeline.  The Trust’s gearing as at 30 November 2022 was 29.1%.

Australian Unity’s legal advisers for the transaction were Hall & Wilcox, while and Bolton Clarke were advised by Minter Ellison and KPMG.

- Ends –


Media contact:
T: 1300 408 776

Bolton Clarke Aged Care, South Australia

  • Smithfield Aged Care, 1 Warooka Drive, Smithfield
  • Little Para Aged Care, 24-28 Wayford Street, Elizabeth Vale
  • Marten Aged Care, 110 Strathfield Terrace, Largs North
  • Ridgehaven Aged Care, Allotment 1, Hazel Grove, Ridgehaven
  • Walkerville Aged Care, 160-176 Walkerville Terrace, Walkerville
  • Charles Young Aged Care, 53-59 Austral Terrace, Morphetville
  • Somerton Park Aged Care, 44-46 Chopin Road, Somerton Park
  • Holly Aged Care, 16-24 Penneys Hill Road, Hackham
  • Ross Robertson Aged Care, 19-33 Cornhill Road, Victor Harbor   

About Australian Unity Healthcare Property Trust

Australian Unity's $3.6 billion Healthcare Property Trust was launched in 1999 and has grown to become one of Australia’s largest and most successful unlisted property funds.

The unlisted property fund’s objective is to provide investors with stable and reliable income and the potential for capital growth. The Trust’s wholesale units produced an 11.86% total return over one year, 24.04% pa over two years, 18.31% pa over three years and 15.42% pa over five years as at 31 October 2022.1

AUHPT currently owns a portfolio of 97 high-grade healthcare assets, including hospitals, medical clinics, aged-care facilities, day surgeries, medical offices, consulting rooms, rehabilitation units, radiology and pathology centres.

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.        

About Bolton Clarke

Bolton Clarke acquired Allity in 2022 and is one of Australia’s most experienced not-for-profit providers of comprehensive, independent living, health and aged care services operating nationally and internationally.

1 Past performance is not a reliable indicator of future performance and returns are calculated after fees and expenses and assume the reinvestment of distributions.

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