The Heathley Direct Medical Fund No. 2 aims to acquire a diversified portfolio of specific medical properties located throughout Australia, with a target total acquisition value of approximately $300 million.
The fund will acquire a mix of strategically located, high quality medical assets with a focus on newly developed properties. It will also participate in the development of new medical properties (greenfield or brownfield sites).
The key investment attributes of the fund include:
Direct exposure to medical property – long term investment fundamentals of the medical property sector remain attractive.
Diversification – investments will be diversified by type, location and tenant.
Long term leases – following the acquisition of new Properties, the portfolio will have a weighted average lease expiry of 7 years as at 31 March 2018.
Attractive projected Fund returns – the Fund has a forecast distribution yield of 5.75-6.25% for the year ending 30 June 2018, which will grow with fixed rent increases from the Property tenants and future exposure to development returns.
Development returns – access to development returns in a tightening yield environment.