The two providers have exchanged on a sale and leaseback arrangement for six aged care homes – three in Cairns and three in south east Queensland.
Brokered by Aged Care Confidential’s Phil Smith (ex-Colliers), the deal will see Australian Unity invest in the property through its $2 billion Healthcare Property Trust – one of the largest unlisted healthcare REITs in the country – while Infinite will be the approved provider.
Phil confirmed: “The transaction price was at an attractive yield and structured to ensure the leasing terms are viable and affordable for the aged care operator, while allowing Australian Unity a long-term passive investment return. The structure has been developed to allow property investors to generate consistent returns in the development of new aged care assets with long-term leases with committed operators that provide vital services to the community.”
“The deal demonstrates that investing in social infrastructure can be beneficial for operators, investors and the community,” he added.
Phil has been busy. Late last year, he brokered the sale and leaseback of The Manor Aged Care facility at Villawood with Heritage Care on a similarly structured lease.
Infinite Care has 11 aged care facilities across Queensland and South Australia. As we have previously reported, listed funds manager and investment bank Moelis bought the majority share in Infinite Care for $45.4 million back in September 2017.
Founders Chris Stride and Tony Partridge kept their 30% stake and continue to head the business. At the time, Moelis said it would target a total return of over 20% per annum over four years for its co-investors.