This article is from the Australian Property Journal archive
AUSTRALIAN Unity’s Healthcare Property Trust (AUHPT) has 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.
Bolton Clark will continue operating the assets under a minimum 20-year lease-back arrangement.
Eight of the nine properties are in metropolitan Adelaide, with one in Victor Harbor. It takes AUHPT’s total exposure in South Australia to 11 sites, and the unlisted healthcare property trust now owns 22 aged care properties with a combined 2,788 beds located in Queensland, NSW, and South Australia.
AUHPT’s total $3.6 billion portfolio now comprises 58% hospitals, 24% medical centres, and 18% aged care properties across Queensland, NSW, Victoria, South Australia, and Western Australia.
The newly acquired aged care properties comprise 95% single rooms and are in densely populated catchment areas with ageing demographic profiles, according to AUHPT.
“In as little as five years, some 60,000-80,000 Australians will turn 80 every year. Given the strong macro-economic drivers, population shifts, and alignment with our existing portfolio, fit-for-purpose aged care properties present important opportunities for investors in AUHPT”, said Chris Smith, general manager – healthcare property, Australian Unity.
“The quality of the assets and the secure, long-term lease arrangements will provide investors a compelling, long-term income stream through to November 2042.”
Total commencing rent is $12.1 million and the deal was struck on a starting income yield of 5.49%, pre-acquisition costs. The size of the land holding is approximately 115,000 sqm with an estimated land value of $57.5 million.
AUHPT has just increased its debt facility from $1 billion to $1.3 billion to provide the unlisted trust with additional capacity for its circa $1 billion acquisition and development pipeline.
The trust’s gearing at the end of November was 29.1%.
Australian Unity’s legal advisers for the transaction were Hall & Wilcox, and Bolton Clarke was advised by Minter Ellison and KPMG.
Stephen Muggleton, CEO, Bolton Clarke Group, said the partnership with Australian Unity was important to the business’ long-term focus on growing its services to meet the needs of ageing Australians.
“Our long-term focus has been on growing our services to meet the needs of ageing Australians. This is an innovative way we can accelerate this growth. It enables us to expand much-needed aged care services into high-demand locations and invest in our capital works development pipeline,” he said.
He said it will continue to be “business as usual” at all locations.
