This article is from the Australian Property Journal archive
THE Australian Unity Healthcare Property Trust (AUHPT) – the largest unlisted healthcare REIT in the country – is tapping investors for $350 million to fund new acquisitions and developments and strengthen its balance sheet.
The offer will include a $150 million non-renounceable rights issue offer to existing investors and a $200 million general offer for new investors.
The $3.8 billion AUHPT launched 24 years ago with a portfolio of four hospitals valued at $70 million, and today has more than 10,000 investors and owns 99 healthcare-related assets across Australia. In December, it acquired nine land and residential aged care building sites in South Australia in a $220 million sale and leaseback deal with aged care provider Bolton Clarke.
Two years ago, Australian Unity knocked back a $2.5 billion takeover bid for the trust from Canadian giant NorthWest HealthCare Properties.
“The capital raise will strengthen the fund’s balance sheet to provide funding for upcoming acquisitions and developments,” said Chris Smith, general manager – healthcare property.
Some of the capital from the raising will be used to reduce the fund’s gearing ratio from 30.5% to around 21%,
Thirty-seven of the trust’s properties were independently valued in February, resulting in a net increase of $29 million, or 3.6%, from prior book value.
“This result highlights the resilience of the portfolio with quality healthcare properties historically coming into their own during periods of economic uncertainty,” Smith said.
The fund’s portfolio has a high 98% occupancy and a long weighted average lease expiry of 16.4 years.
Esther Kerr-Smith, CEO – wealth & capital markets, said, “Data shows that while Australians enjoy one of the highest life expectancies in the world, we are also living with increasing levels of chronic disease which is placing never-before-seen demand on already stretched healthcare systems”.
Existing investors who have taken up their full entitlement under the rights issue offer, which closes at the of the month, will have an opportunity to apply for any amount not taken up under the rights issue offer to the extent that they would not exceed their percentage ownership of AUHPT through the excess offer that opens next month.
