Heathley Aged Care Property Fund No. 1 (HACPF1) has recently acquired the 49-bed Tuohy Nursing Home in Midland, Perth and six surrounding properties.
Heathley has partnered with Hall and Prior to collectively fund the redevelopment of the property into a new ~120-bed residential aged care facility.
In an asset class that is difficult to penetrate, the Tuohy acquisition is beneficial to investors for a number of reasons, notably:
- Partnership with a leading aged care provider: Hall and Prior is an experienced, highly regarded operator. The Tuohy acquisition is the first of an ongoing partnership with Hall and Prior, as Heathley continues to have discussions on a number of other potential transactions
- Improved fund metrics: Increase in FY19 forecast distribution yield for HACPF1 from 7.0 cpu to 7.9 cpu, and improves diversification by tenant and location
- Growth of portfolio size: The successful completion of this settlement adds $12.45 million to HACPF1 portfolio, resulting in the gross assets of the fund reaching $94 million. This acquisition will be followed by an additional Hall and Prior property which we will announce shortly.