Overwhelming demand from new investors has seen Australian Unity’s $1.3 billion Healthcare Property Trust (HPT) raise $250 million within three days.
HPT, the largest healthcare property fund in the country, opened to applications for the issue of new funding units on Wednesday 25 October and closed at 3pm on Friday, 27 October – a week ahead of schedule following strong interest from new and existing investors. The new capital will fund future development and acquisition opportunities.
This year, HPT has raised a total of $430 million in two tranches in the space of five days. This includes more than $170 million raised within 30 hours in May this year, in addition to the latest $250 million offer.
Mark Pratt, General Manager of Property at Australian Unity, acknowledged the support of circa. 1800 new investors with approximately 80 per cent of the $250 million raised coming from retail, self managed super funds and high net worth investors.
“The overwhelming response confirms the market’s support for Australian Unity’s investment approach, asset quality and the strength of the management team led by Chris Smith”, he said. “It’s a great privilege to be able to raise this sum of money from investors so quickly and invest it back into sought-after healthcare infrastructure and services for Australian communities”.
Mr Pratt said the innovative structure for the October offer was designed to safeguard the interests of existing investors, give new investors access to the HPT and strengthen the fund for future development activity.
The funds raised will be used for ongoing long-term, brownfield developments at the Valley Private Hospital in Mulgrave, Victoria, a new 150 bed private hospital in Sunshine, Victoria, Brisbane Waters Private Hospital in Woy Woy, NSW and the Primary Health Care Medical Centre in Greensborough, Victoria. Funds 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.
HPT commenced almost 20 years ago. It has more than 10,000 investors and owns 42 healthcare assets across Australia’s eastern seaboard. It 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 17.99 percent over one year, 14.69 percent per annum over three years, 12.70 percent per annum over five years and 9.38 percent per annum over a decade.1
1 Performance as at 30 September 2017. Returns are calculated after fees and expenses and
assume the reinvestment of distributions. Past performance is not a reliable indicator of