AUI Healthcare Property Trust capital raising oversubscribed

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Australian Unity Investments (AUI) has completed the second phase of the $50 million discounted rights offer for its Healthcare Property Trust (HPT), oversubscribed.

Australian Unity Investments (AUI) has completed the second phase of the $50 million discounted rights offer for its Healthcare Property Trust (HPT), oversubscribed.

The second phase was limited to $28.9 million and the funds are being used for the expansion of three of the 22 properties owned by HPT – The Valley Private Hospital, Peninsula Private Hospital and Beleura Private Hospital.

Mr Mark Pratt, AUI’s general manager – property, mortgages & capital markets, said a key part of AUI’s ongoing strategy for HPT is to expand, develop and enhance existing properties to add further value for investors.

“The capital raised will be used to expand and make improvements to the three hospitals to satisfy increasing community needs for health services, that in turn is reflected in strong demand from quality tenants for space.

“The expansions will include an additional 76 beds and five new operating theatres across the three hospitals, a new intensive care unit at Peninsula Private Hospital, a new chemotherapy unit at Beleura Private Hospital and a new endoscopy room at The Valley Private Hospital,” he said.

Mr Pratt added that the fundamentals of the healthcare property sector are very strong.

“The public healthcare system is already struggling to cope with demand, intensified by Australia’s ageing population, and as a result the private healthcare system will continue its continued growth as private operators help manage the increasing need for medical care.

“In addition, there is increasing demand because of Australia’s demographics, with an ageing but more active population seeking additional healthcare services.

“As a result of the healthcare sector expansion, demand for healthcare properties has increased and the trend for rental growth for healthcare properties has continued,” Mr Pratt said.

Mr Cameron Dickman, AUI’s general manager – retail, added that investors recognise the current and potential value in the healthcare property sector.

“The fact that this raising was oversubscribed shows the attractions of the healthcare property sector are increasingly being recognised, particularly properties that are actively managed.

“It is also further evidence that interest in unlisted property funds within investors’ portfolios is increasing, and is recognition of Australian Unity’s growing property capabilities.

“We believe that the sector provides an attractive way to access income and counter inflation through investment cycles.

“HPT’s characteristics of low gearing, consistent yield and the potential for capital growth, as well as its excellent track record, clearly strike a chord with advisers and investors,” Mr Dickman said.

HPT has over $435 million in gross assets and owns 22 healthcare-related properties in New South Wales, Victoria, Queensland and South Australia.

The Wholesale Units of HPT have returned 5.57% over one year, 6.64% pa over two years, 7.60% pa over five years and 12.09% pa since inception from 28 February 2002 (to 31 March 2012)*.

Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has $12.3 billion in funds under management (as at 31 March 2012).

The property funds management business has over $1.7 billion in funds under management (as at 31 March 2012). Australian Unity Investments’ unlisted property funds and syndicates own more than 60 properties in the healthcare, retail, industrial and office sectors, in Victoria, New South Wales, Queensland, ACT, Western Australia and South Australia.


For more information please contact:

Mr Mark Pratt – Phone: 03 8682 4448
Mr Cameron Dickman – Phone: 03 8682 4407

18 April 2012