One of Australia’s biggest healthcare property players has spent almost $100 million to add three Queensland aged care properties to its $2.4-billion portfolio.
Australian Unity’s Healthcare Property Trust has settled a transaction with McKenzie Aged Care Group to acquire a 133-bed facility at Capalaba, a Deception Bay development for 122 residents, and The Terraces at Varsity Lakes, which caters for 149 residents.
The three properties will be leased back to McKenzie Aged Care Group for a minimum 25-year term with the option to extend the leases for two additional 10-year periods.
Australian Unity general manager of healthcare property Chris Smith said the three-property deal was compelling for investors and would be an income-producing opportunity in an increasingly competitive market.
“The addition of three established, well-located and securely leased aged care facilities enhance tenant and income diversification and increase the fund’s weighted average lease expiry from 15.7 to 16.1 years, based on the 25-year lease terms for the portfolio acquisition,” Smith said.
“These acquisitions augment AUHPT’s aged care portfolio and follow our recent land purchase ahead of the $54-million development of an aged care facility in Knoxfield in Melbourne’s eastern suburbs to commence in 2022.
“We continue to make long-term investments in Australia’s critical healthcare and social infrastructure without paying too much for hotly contested assets in an exuberant market.
“We are currently developing new facilities and in active due diligence on a number of other transactions totalling about $500 million.”
In the 12 months to the end of September 2021 the fund returned 36.5 per cent, and its three-year return was 17.9 per cent per annum. Australian Unity’s Healthcare Property Trust was named Lonsec’s Property and Infrastructure Fund of the Year last month.
Australian Unity executive general manager of property Mark Pratt said healthcare real estate remained an attractive asset class for investors.
“Demand for superior, well-run aged care, healthcare and medical infrastructure will only increase as our population ages,” Pratt said.
“As the consolidation of the aged care industry unfolds, Australian Unity will continue to invest in and develop properties that deliver long-term investor returns whilst supporting older Australians in their later years.”
Australian Unity’s $2.4 billion Healthcare Property Trust portfolio consists of healthcare, aged care and medical infrastructure assets with a deep pipeline of development projects and acquisitions currently worth more than $1.5 billion.