Australian Unity’s $1.5 billion Healthcare Property Trust (HPT) has refinanced its debt facility to $740 million.
The HPT – the largest healthcare property fund in the country – has secured a further $320 million in funding that will support the progress of the fund’s $550 million development pipeline and lay the groundwork for further growth and expansion.
The new debt facility replaces an existing agreement and results in an extension of the HPT’s loan term to a minimum of five to seven years. It includes existing long-term capital partners ANZ, Westpac and NAB, as well as new partner, AustralianSuper.
Louise Cahill-Mulvogue, Head of Strategy and Support - Property at Australian Unity, said bringing AustralianSuper into the mix sent a strong signal to other super funds about the benefits of getting involved in long- term debt financing of property assets for community benefit.
“The HPT’s partnership with AustralianSuper is a great example of how Australia’s superannuation fund members can support the growth and expansion of critical healthcare infrastructure for Australian communities.
“It’s a strong endorsement of the HPT and its future strategy to have supportive capital partners that understand and appreciate the clear, long- term vision of the fund”, she said
Executive General Manager of Property at Australian Unity, Mark Pratt, said that the management of debt was as important to the Fund as its active and prudent management of the 44 healthcare related properties in the portfolio.
“In a globally competitive environment, this long-term financing provides certainty for investors that the HPT can continue to progress its half a billion dollar development pipeline supporting its ability to produce strong returns for investors”, he said.
Mr Pratt also acknowledged Planum Partners who worked closely with the team at Australian Unity to negotiate and secure the innovative debt refinancing agreement.
Managing Director of Planum Partners, Shaun Newing, said that Planum Partners was proud to work with Australian Unity to refinance and restructure HPT’s existing debt facilities.
"The new agreement is an exciting first, as it involves bank and non-bank financiers. This means we can provide flexibility for current and potential developments in the HPT pipeline of healthcare opportunities, and stability for long term investors,” he said.
Australian Unity’s Healthcare Property Trust invests with a focus on delivering regular income, plus the potential for capital growth over the longer term. It currently owns 44 individual healthcare assets, including hospitals, medical clinics, aged-care facilities, day surgeries, medical offices, consulting rooms, rehabilitation units, radiology and pathology centres.
The Healthcare Property Trust has delivered investors consistent, steady income distributions since its inception and in recent years has also delivered positive capital growth. It has delivered investors a total return of 21.01 percent over one year, 15.37 percent per annum over three years, 12.90 percent per annum over five years and 9.50 percent per annum over a decade.1
For more information on Australian Unity’s Healthcare Property Trust, go to https://australianunity.com.au/invest-in-healthcare
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Nathan Clarke, Six O’Clock Advisory Mobile: 0400 442 414
Performance as at 31
2017. Wholesale Units total returns are calculated after fees
and expenses and assumes reinvestment of distributions. Inception date is 28 February 2002. Past performance is not a reliable indicator of future performance.