Australian Unity Investments (AUI) has purchased an aged care facility in Constitution Hill, at Toongabbie in Sydney, for its Healthcare Property Trust (HPT) for $15.1 million from Australian Unity Retirement Living Services (AURLS). AURLS will rent the facility back on a 20 year lease and manage it as part of the award winning Constitution Hill Retirement Village Community.
The Community was recently subdivided into four separate lots: community amenities; retirement village; aged care facility; and a fourth lot earmarked for future development. Only the 9,276 square metre lot that includes the 121 bed aged care facility, day care respite centre and dementia-specific unit, has been sold to the HPT.
Mr Derek McMillan, head of AURLS, says that the strategy of subdividing the total property and selling the aged care component was developed to raise funds to position AURLS to take advantage of other opportunities likely to arise in the next few years.“There will be a number of good development opportunities arising in the coming year and we want to be in a position to take advantage of them. “It made sense to talk to AUI as a potential purchaser not only because of our existing relationship but also because landlord choice is extremely important for aged care operations,” he said. The acquisition brings the total assets of the HPT to approximately $415 million*. Mr Chris Smith, property portfolio manager at AUI, says that it is the first aged care facility purchased by the HPT since the Trust was created and adds further diversification.
“We have been looking at aged care facilities for the Trust for over three years and this is the first one that meets our criteria of a modern building with a highly-regarded tenant in the right location. “The property was built in 2005 and provides a high standard of accommodation with up-to-date facilities such as wide access doors, individual room temperature control and 24-hour emergency call system in both rooms and bathrooms. “Because it forms part of the larger Constitution Hill Retirement Village Community, residents and patients also have access to a wide range of services such as hairdressers, shops and entertainment.
“It is a well-established, well-managed facility with a track-record of high occupancy levels, in an area that is experiencing a high level of demand for aged care services, and we believe it will add outstanding value for our investors,” Mr Smith said.The normal due diligence process was undertaken by AUI, including an independent valuation and environmental, legal and technical reviews.
The HPT was recently given a ‘Highly Recommended’ rating by Lonsec for the second year in a row, and has a 4½ star rating by Adviser Edge, only the third time this rating has been given. The wholesale version of HPT has returned 11.27% over one year and 17.46% pa over five years.*
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has over $5.4 billion in funds under management*. 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.
Australian Unity Retirement Living Services provides accommodation and related services to retirees. It operates 15 retirement communities, 53 community care places and four residential aged care facilities in New South Wales and Victoria. These facilities offer over 1,700 independent living units and approximately 450 aged care beds.
* Information as at 31 December 2008.
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For further information please contact:
Derek McMillan
Ph: 03 8682 6201
E: dmcmillan@australianunity.com.au
Chris Smith
Ph: 03 8682 4534
E: csmith@australianunity.com.au
This information is intended only to provide a broad summary of the AUI Healthcare Property Trust. Investment decisions should notbe made upon the basis of its past performance since future returns will vary. Please refer to the Product Disclosure Statement available on australianunity.com.au.The Lonsec Limited (“Lonsec”) ABN 56 061 751 102 rating (assigned July 2008) presented in this document is limited to “General Advice” and based solely on consideration of the investment merits of the financial produc). It is not a recommendation to purchase, sell or hold the relevant product, and you should seek independent financial advice before investing in this product. The rating is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec receives a fee from the fund manager for rating the product using comprehensive and objective criteria.