This article is from the Australian Property Journal archive
ASX-listed Generation Healthcare REIT has bought a portfolio of aged care properties from RSL Care for $45.8 million, after raising $52 million.
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The portfolio consists three properties; Baycrest at 99 Doolong Rd Pialba QLD ($14.4m); Darlington at 126 Leisure Drive, Banora Point NSW ($13.5m); and Tantula Rise at 96 Tantula Rd West, Alexandra Headland QLD ($17.9m).
The three properties have 311 beds combined and the acquisition will provide a blended yield of 7.65%.
As part of the sale, each property will be leased to RSL Care on an initial 20-year term plus options. RSL Care and GHC have also signed a collaboration agreement to source and secure further residential aged care opportunities.
CEO Miles Wentworth said the acquisition provides the fund with direct exposure to Australia’s ageing population, leased to one of the largest not-for-profit aged care providers.
RSL Care’s CEO Craig Mills said the deal will support RSL Care in delivering on its strategic goal of becoming a leading residential aged care operator across the eastern seaboard over the next five years.
Generation Healthcare has also agreed commercial in-principle terms with St John of God Health Care for the $120 million Casey Stage 2 project.
Following the fully equity funded portfolio acquisition, Generation Healthcare has updated its FY15 UNOI and DPU guidance to 9.56 cpu and 8.58 cpu respectively; and provides FY16 UNOI guidance of 9.90 cpu (an increase of 3.5%) and DPU of 8.84 cpu (an increase of 3.0%).
Meanwhile APN Property Group has launched a $30 million capital raising and will use the proceeds to increase its co-investment in Generation Healthcare REIT.
APN also upgraded its FY2015 operating earnings guidance from 2.30 – 2.50 to 2.49 – 2.63 cents per share (after tax), post capital raising, an increase of 6.7%. Furthermore, APN forecast a 0.25 cents per share fully franked final dividend, taking the full year fully franked dividend to 1.50 cents per share.
“We are pleased to support Generation Healthcare REIT in its latest property acquisitions and its entry into the residential aged care sector. Our investments in both Generation Healthcare REIT and Industria REIT offer APN shareholders attractive return profiles as well as comprising a key part of our strategy to align our interests with investors in our listed funds,” executive director Tim Slattery said.
Australian Property Journal
