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Capital investment in property assets key to REIT performance, says Australian Unity

Media
11 Apr 2017
A commitment to meaningful capital improvements of key assets in property investment portfolios can play an important role in improving returns for REIT investors, according to Mr Chris Smith, the head of Healthcare Property at Australian Unity.

Addressing a recent forum Mr Smith said that the Australian Unity Healthcare Property Trust’s forward looking development pipeline of $529m to strengthen key assets, contributed to the Trust’s solid returns by attracting high occupancy rates and a strong list of tenants across the country.

“In Victoria, we have undertaken significant capital expenditure totalling $9.46 million on developing Brunswick Private Hospital, which has seen its value more than double from $11.45 million in 2009 when we acquired the property to $30.10 million today,” said Mr Smith.

Mr Smith said The Valley Private Hospital in Victoria was another recent example of the strong asset valuations to be gained from the expansion and development of the facility, with improvements including two new wards to create 78 additional beds and two new levels of basement car parking.

“As investors in the sector since 1999, with net returns since inception over 11 percent per annum and currently over $1 billion funds under management – we understand the facilities, the tenants and the importance of these assets to the community,” he said.

With a portfolio of 39 healthcare-related properties across the country and another $163 million in projects under assessment, the future looks bright for Australia’s largest healthcare property fund.

“We’re always working with tenants to improve or expand these properties. This, in turn, allows us to put in place long-term leases with satisfied and committed tenants, which ultimately enables us to deliver consistent returns for investors” he said.

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 Healthcare Property Trust, go to

https://www.australianunity.com.au/wealth/investment-options/property/healthcare-property-trust-wholesale

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For media enquiries contact:

Nathan Clarke, Six O’Clock Advisory
Ph: 0400 442 414

This information is general information only. 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. Effect 8 April 2016, new investor applications and additional application from existing investors were temporarily 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, investors should obtain the current Product Disclosure Statement (PDS) and consider whether the product is appropriate for them. A copy of the PDS is available at australianunity.com.au/wealth or by calling our Investor Services at 13 29 39.

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.

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