South Australian Aged-Care Assets Sold for $220m

One of the nation’s largest unlisted healthcare property funds has made a nine-asset deal in South Australia, laying down $220 million for the portfolio.

Australian Unity Healthcare Property acquired the aged-care properties from operator Bolton Clarke under a sale-and-leaseback deal.

This grows the fund’s holdings in SA to 11. All nine of the new assets are single-bed room facilities, meeting growing demand in the sector away from multi-bed rooms.

The properties are in Smithfield, Elizabeth Vale, Largs North, Ridgehaven, Walkerville, Morphettville, Somerton Park, Hackham and Victor Harbor.

The acquisition has a starting income yield of 5.49 per cent and Bolton Clarke has a minimum 20-year lease on the properties.

The $3.6-billion unlisted trust’s aged care holdings now number 22 with assets in Queensland and NSW as well as SA, for a combined 2788 beds.

Last month, the trust’s debt facility from a consortium of seven lenders increased to $1.3 billion to support its $1-billion expansion and development pipeline

The sector in Australia is proving attractive to overseas investment on the back of the nation’s greying population.

Last year, Australian Unity fended off a $2.8-billion takeover bid.