Australian Unity Investments’ (AUI) Healthcare Property Trust (HPT) has purchased Vaucluse Hospital and Patricia Gladwell Aged Care Home in Brunswick, Victoria, for $11.45 million.
It follows the recent refinancing of the borrowings of the Trust with a $220 million facility which AUI said would be used to fund purchases in a market that offers excellent opportunities, as well as refurbishing and expanding existing properties.
The Brunswick acquisition is an 11,370m2 site consisting of three land titles at 72 to 90 Moreland Road. It contains Vaucluse Hospital – a 70 bed private hospital – and Patricia Gladwell Home – a 60 bed aged care home – as well as a day surgery; pharmacy, pathology and radiology facilities; a hydrotherapy pool; and a car park.
AUI has entered into a new 20 year lease for both the hospital and aged care home with existing tenant Healthe Care Australia Pty Ltd, which runs eleven privately owned hospitals around Australia.
Mr Martin Hession, head of property at AUI, said that the properties offer good long-term security of income for investors in the HPT and are an ideal investment for the Trust.
“It is a high profile site within a large catchment area for medical services, and already has a well-established tenant in Healthe Care Australia, who we deal with in other properties in the Trust.
“The hospital and aged care home are modern buildings that offer substantial depreciation benefits.
“While the buildings are in good condition, we intend to undertake a $4 million refurbishment of the hospital within the next couple of years, including updating the front entrance and facade, improving lighting levels, replacing air-conditioning units, extending the current carpark, and consolidating existing building structures to allow for an increased number of beds,” Mr Hession said.
The hospital will be renamed “Brunswick Private Hospital” and the aged care home “Brunswick House”.
The wholesale version of HPT has returned 7.12% over one year, 9.51% pa over two years, 13.97% pa over three years and 16.73% pa over five years*. The Trust owns a diversified portfolio of healthcare properties including Peninsula Private Hospital in Victoria, Royal Prince Alfred Medical Centre in New South Wales, Wakefield Private Hospital in Adelaide and an IVF clinic at St Leonards on Sydney’s lower north shore in New South Wales.
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has close to $6.0 billion in funds under management (as at 31 July 2009). Its investment approach is to use its established in-house expertise in property and mortgages while also forming joint ventures and strategic alliances with other organisations with specialist expertise.
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For further information please contact:
Martin Hession
Phone: 03 8682 4408
Email: mhession@australianunity.com.au
*As at 31 July 2009. Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not a reliable indicator of future performance as returns may vary.
