Healthcare Property Trust raises capital
Australian Unity raises $291 million to fund Healthcare Property Trust’s development pipeline and new acquisitions
Australian Unity’s $2 billion Healthcare Property Trust1 – one of the largest unlisted healthcare REITs in the country – has raised $291 million in equity from new and existing investors to fund acquisitions and its development pipeline.
Currently, the Trust manages a portfolio of 55 healthcare-related property assets that include hospitals, medical centres and aged care facilities.
The Trust has a development pipeline of some $675 million. Current projects include the ~$390m Surgical, Treatment And Rehabilitation Service (STARS) in Herston, Queensland, a $28 million upgrade to Peninsula Private Hospital in Langwarrin, Victoria and a $22 million expansion at Beluera Private Hospital in Mornington, Victoria.
The Trust will also acquire six aged care properties leased to Infinite Care for 25 years, as well as a loan to assist with the fit out of the properties. The six new aged care properties are located in South East Queensland and Cairns.
Chris Smith, Head of Healthcare Property at Australian Unity, said there was significant scope to undertake development work with long-standing tenants and hospital operators across the Trust’s portfolio.
“Our current and future developments enable us to put in place long-term leases with committed tenants that provide vital services to the community and a clear pathway to consistent returns for investors”, he said.
Australian Unity’s Executive General Manager – Property, Mark Pratt, said investors’ positive response to the Trust’s re-opening demonstrated support for Australian Unity’s investment approach, experience and history of delivering for investors in the sector.
“The Trust has an enviable 20-year performance track record which is a testament to the consistency of returns social infrastructure assets like hospitals, medical centres and aged care accommodation can deliver for investors”, Mr Pratt said.
“The Trust demonstrates that investing in social infrastructure can work for both investors and communities – the two don’t need to be mutually exclusive”, Mr Pratt said.
The Trust today comprises an investor base of more than 12,000 investors and 55 assets across Australia. During 2017, the Trust raised $420 million in new equity to fund acquisitions and the Trust’s development pipeline.
The Trust has delivered investors consistent, regular income distributions since its inception and in recent years has also delivered positive capital growth. The Trust’s wholesale units produced a total return of 10.33 percent per annum over the past decade, and total returns of 11.07 percent over one year, 13.27 percent per annum over three years and 13.02 percent per annum over five years as at 31 December 2019.
Celebrating 20 years of healthy returns
The Healthcare Property Trust marked its 20th birthday in July 2019. Its sustained growth and success has been driven by the long-standing support of its loyal investor base, a stable management team that has guided its growth over this time and a mutual parent company intimately linked to the challenges of Australia’s ageing and growing population via its business operations in financial services, independent and assisted living and private health insurance.
Units in the Australian Unity Healthcare Property Trust (ARSN 092 755 318) are issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No. 234454 in its capacity as the responsible entity of the trust. The information in this media release is general information only and is not based upon, nor does it consider the objectives, taxation, financial situation, or needs or goals of any particular individual or investor. In deciding whether or not to acquire, hold or dispose of the product, an investor should obtain a copy of the Product Disclosure Statement (PDS) and consider whether the product is appropriate for their particular requirements and objectives. Before making any decision using any of the information contained in this media release, you should carefully read the PDS in its entirety. We also recommend that you consult with a financial adviser or tax adviser. A copy of the PDS is available at australianunity.com.au/wealth or by calling our Investor Services team on 13 29 39. Investment decisions should not be made upon the basis of past performance or distribution rate since each of these can vary. The information provided in this media release is current at the time of distribution.
2Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not an indicator of future performance.