Australian Unity Investments (AUI) is raising up to $28.9 million in a discounted rights offer to fund the proposed expansion of three of the 22 properties owned by its Healthcare Property Trust (HPT) – The Valley Private Hospital, Peninsula Private Hospital and Beleura Private Hospital.
The raising follows a successful discounted rights offer last year to HPT investors that raised $21.1 million.
The new issue, which opened on 12 March 2012, will give existing investors the first opportunity of purchasing discounted units, with the entitlement period closing on 30 March 2012. Any remaining units will be offered to new investors. The two rights offers will raise a total of $50 million.
The new offer for existing investors will allow them to purchase $1 of new units for every $8.75 worth of units held, at a 7.5 percent discount to the unit price (as at 29 February 2012). Investors can choose to invest in any of the three unit classes offered – retail, wholesale and Class A units – regardless of the type of units they currently hold.
New investors will also be able to apply for discounted units in HPT; however they will only be allocated units if existing investors do not take up the whole offer, and it will be on a ‘first in, first served’ basis. This part of the offer will remain open until 25 May 2012 unless fully subscribed earlier.
Mr Damen Purcell, AUI’s head of distribution – retail business, said that the decision to make another offer follows the success of the original offer and will allow AUI to fund the expansion of the three HPT properties from equity.
“Investors in the HPT have shown very strong support for the fund and the overall strategy, and the fund has performed well for them.
“There is increasing recognition of the attractiveness of the healthcare property sector among investors and in light of this we are seeking to take advantage of the sector’s resilience to the challenging economic environment, firstly to the benefit of existing investors and secondly to attract new investors.
“The Healthcare Property Trust (wholesale units) has distributed 7.25 percent for the one year to 31 December 2011, 6.95 percent for the three years to 31 December 2011 and 7.33 percent for the five years to 31 December 2011*, providing investors with income paid quarterly,” Mr Purcell said.
Mr Chris Smith, AUI’s head of healthcare and retirement living property, added that last year’s raising has allowed work to start on the properties.
“A $7 million expansion to the Peninsula Private Hospital is well underway, which will result in a new intensive care unit, a sixth operating theatre, and 13 new beds.
“In addition, we have started work on an expansion, redevelopment and refurbishment of the Beleura Private Hospital, which will add another operating theatre as well as 25 new beds, and the Valley Private Hospital, which will allow for four new operating theatres and 38 additional beds.
Mr Smith added that, with people living longer and the baby boomer generation predicted to swell the number of older Australians over the next 20 years, Australian Unity believes that the demand for healthcare is set to increase dramatically.
“We believe that investing in these properties now will significantly improve their value and enhance returns for investors,” he said.
The Healthcare Property Trust has over $434 million in gross assets and owns 22 healthcare properties in New South Wales, Victoria, Queensland and South Australia as well as three vacant parcels of land for future development.
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has $11.7 billion in funds under management (as at 29 February 2012).
The property funds management business has over $1.7 billion in funds under management (as at 29 February 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:
Damen Purcell – Phone: 02 9256 8705
Chris Smith – Phone: 03 8682 4534
*Past performance is not a reliable indicator of future performance. Returns are calculated after fees and expenses and assume the reinvestment of distributions.
13 March 2012