The Heathley Aged Care Property Fund No.1 (Fund) is an unlisted direct property fund that invests in leased residential aged care properties located throughout Australia, targeting a portfolio value of up to $200 million and diversified by operator and location.
A THEMATIC INVESTMENT IN THE GROWTH OF AUSTRALIA’S AGEING POPULATION
Fund Overview The Fund provides investors with an opportunity to invest in the growth of Australia’s ageing population by acquiring a diversified portfolio of aged care properties located throughout Australia.
Investment Strategy: to achieve superior risk adjusted returns by:
Acquiring existing or fund-through aged care properties
Participating in the improvement of the properties through brownfield development if beneficial
Actively managing the properties during the Investment Term
Target acquisitions: Properties which are diversified by operator and location, with long term leases in place, and multiple exit strategies
Target portfolio value: $200 million
Investment Period: Acquire properties within three years of Fund establishment
Portfolio Management Period: Following the completion of the Investment Period, the Fund will have a Portfolio Management Period of up to five years where income and capital growth strategies will be applied. If the properties have not been sold and the Fund wound up by the time of expiry of the Portfolio Management Period, the investors will vote to liquidate or extend the Fund for a further two years.
The Fund is positioned to deliver superior risk-adjusted returns Heathley believes the Fund is attractive for a number of reasons, including:
Direct exposure to aged care property – long term investment fundamentals of the aged care property sector remain attractive
Diversification – investments are diversified by type, location and tenant, which will improve further over time
Long term leases – lease terms of between 15 and 20 years supports an attractive WALE
Attractive projected Fund returns –which grow with fixed rent increases
Opportunity to invest in the growth of Australia’s ageing population Residential aged care is a growing part of the provision of health care services in Australia. Heathley remains positive about the long term investment fundamentals of the aged care sector as non-cyclical demand drivers has protected it from external market forces, including:
Increasing number of elderly citizens, driven by increased life expectancy and the ageing of the ‘baby boomer’ generation
High barriers to entry and a low threat of substitutes
Attractive and sustainable government funding through both operator contributions and consumer directed packages
Strong operator occupancy rates, with industry wide rates of >92% for the past 15+ years