Australian Unity’s $1.3 billion healthcare property trust (HPT) – the largest healthcare property fund in the country — will re-open on the 25th of October for a limited period to raise approximately $250 million for its ~$700 million development pipeline in healthcare property.
The HPT commenced almost 20 years ago and today has more than 10,000 investors, and owns 42 healthcare assets across Australia’s eastern seaboard.
The product disclosure statement for the HPT’s new unit class will be available on Monday the 9th of October and applications will be accepted from the 25th of October. The offer will be open to new applications until the target amount has been raised. The re-opening follows the successful capital raise in May this year which saw more than $180 million invested within 30 hours.
The re-opening will seek to raise funds for ongoing long-term, brownfield developments at the Valley Private Hospital in Mulgrave, Victoria, the new 150 bed private hospital in Sunshine, Victoria, Brisbane Waters Private Hospital in Woy Woy, New South Wales and the Primary Health Care Medical Centre in Greensborough, Victoria.
Funds raised will also be deployed for the greenfield development to construct the specialist public health facility which forms part of the $1.1 billion Herston Quarter development in Brisbane.
Mark Pratt, General Manager of Property at Australian Unity, said the October fund opening was structured in an innovative way to safeguard the interests of existing investors, give new investors access to the HPT and strengthen the fund for future development activity.
He said the initial amount raised by this offer will be allocated to a new unit class within the HPT and initially invested in a portfolio of cash, that progressively, will be drawn down and allocated to the ongoing capital commitments related to the acquisition and development activities of the Trust.
"Over time, the return for a new investor will increasingly reflect a return derived from the healthcare property assets of the Trust.
"This structure achieves the dual aim of providing certainty of funding for our development and other activities in a way that minimises the prospect of diluting the returns of existing investors."
Mr Pratt said that Australian Unity’s extensive experience in developing healthcare infrastructure, coupled with Australia’s rapidly ageing population and the growing demand for healthcare services, made healthcare property a compelling investment option for investors.
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 42 individual healthcare assets, including hospitals, medical clinics, nursing homes, 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 13.96 percent over one year, 13.85 percent per annum over three years, 11.94 percent per annum over five years and 9.32 percent per annum over a decade.1
1 Performance as at 30 June 2017. Returns are calculated after fees and
expenses and assume the reinvestment of distributions. Past performance is not
a reliable indicator of future performance.