The HPT commenced almost 20 years ago and today has more than 7,500 investors, and currently owns 40 healthcare assets across Australia’s eastern seaboard.
HPT closed to new investment in April last year due to overwhelming demand and to safeguard the interests of existing investors. It will open for a limited period.
HPT is currently seeking to initially raise approximately $150 million to fund on-going, long-term, brownfield developments at the Valley Private Hospital in Mulgrave, Victoria, Brisbane Waters Private Hospital in New South Wales and the Primary Health Care Medical Centre in Greensborough, Victoria.
Funds will also be deployed for greenfield developments to construct the Primary Health Care Medical Centre in Robina, Queensland, Tuggerah Lakes Private Hospital in New South Wales and the Specialist Rehabilitation and Ambulatory Care Centre (SRACC) which forms part of the $1.1 billion Herston Quarter redevelopment in Brisbane, Queensland.
The re-opening is scheduled for Monday the 15th of May and HPT will remain open to new applications only until $150 million has been raised.
Mr Mark Pratt, General Manager of Property at Australian Unity, said “the SRACC will be the first public hospital in Australia to be built in a real estate investment trust structure using private capital from investors.”
Mr Pratt added, “the fundamentals underlying the health sector remain strong, and there has been a very positive response from investors and financial advisers about HPT’s re-opening.”
HPT’s story is one that continues to resonate with a growing number of investors.
“With our first-class portfolio of assets, committed long-term tenants, significant development pipeline and the growing demand for healthcare services from Australia’s rapidly ageing population, healthcare property remains a compelling investment option for investors,” said Mr Pratt.
Australian Unity’s Healthcare Property Trust invests in healthcare-related property assets with a primary focus on delivering regular income, plus the potential for capital growth over the longer term. It includes the ownership of the infrastructure supporting the healthcare system including hospitals, medical clinics, nursing homes, day surgeries, medical offices, consulting rooms, rehabilitation units, radiology and pathology centres.
For more information on Australian Unity’s Healthcare Property Trust, go to https://www.australianunity.com.au/wealth/hpt
Healthcare Property Trust in exceptionally healthy position
In April, HPT completed re-valuations on 11 properties1 in its portfolio resulting in a net increase of $25.76 million (or eight and a half per cent) from the properties book value immediately prior to valuation.
The increases reflect the quality of the HPT’s assets coupled with capitalisation rate compression driven by the weight of cash continuing to flow into the sector from institutional investors.
Mr Chris Smith, Head of Healthcare Property at Australian Unity said “as the HPT has grown and its popularity increased, we have upped the ante on our development activity to build new hospitals and other healthcare facilities in areas where Australians need better access to necessary and sought after healthcare services.”
“We expect further cap rate tightening for the rest of calendar 2017. We continue to use our experience in the sector to avoid paying too much for assets while making significant and strategic capital investments to improve and expand existing assets”, he said.
Mr Smith said Australian Unity provided investors with a distinct advantage by giving investors access to its understanding of the nuances of the
healthcare sector in Australia via its other operations in health insurance, preventative health, disability services, and in retirement and aged care.
“HPT’s long-term and prudent development approach and its continued work with tenants to secure stable and long term leases is a powerful combination that drives returns for investors, Mr Smith said.
HPT’s objective is to provide investors with stable income with the potential for capital growth over the long-term. It has an enviably consistent performance track record over all time periods.
HPT Wholesale Units – Performance (at 31 March 2017)
Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not a reliable indicator of future performance. * Inception date for Wholesale Units is 28 February 2002 (date the Trust’s Wholesale Units were first issued.)
Healthcare Property Trust at a glance – at 31 March 2017
HPT is one of the highest rated funds in Australia. It has a highly recommended rating from Lonsec Research and Zenith Investment Partners and received SQM’s first ever five star rating in December last year.
The Australian Unity Healthcare Property Trust - Wholesale Units is issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No. 234454. Effective 8 April 2016, new investor applications and additional applications from existing investors were temporary suspended. The information in this document is general information only and is not based on the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product, you should obtain the current Product Disclosure Statement (PDS) and consider whether the product is appropriate for you. A copy of the PDS is available at australianunity.com.au/wealth or by calling our Investor Services at 13 29 39. Investment decisions should not be made upon the basis of its past performance or distribution rate, or any ratings given by a ratings agency, since each of these can vary. In addition, ratings need to be understood in the context of the full report issued by the ratings agency itself. The information in the document is current at the time of publication only.
The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned December 2016) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines.
The Lonsec Rating (assigned to Australian Unity Healthcare Property Trust – March 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Australian Unity Investments product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes noobligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings.
“*Outstanding – Highly suitable for inclusion on APLs. The rating contained in this document is issued by SQM Research Pty Ltd. AFSL 421913. Please visit www.sqmratings.com.au for a full definition of the ratings and access to the research reports. SQM Research is an investment research firm that undertakes due diligence on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.”
For more detailed information on the valuations go to https://www.australianunity.com.au/wealth/hpt
Nathan Clarke, 6 O’clock Advisory
Mobile: 0404 442 414
About Australian Unity
Australian Unity is a national health, wealth and living mutual company providing services to almost one million Australians, including 300,000 members. Australian Unity’s history as a trusted mutual organisation dates back to 1840. It has grown organically—by continually evolving to provide the services and products needed by the communities it serves—as well as through successful strategic mergers and diversification in to new business activities.