The Australian Unity Healthcare Property Trust (AUHPT) has launched a $350 million capital raising, giving it the potential to continue expansion of its healthcare assets and reduce gearing.
In 2021, AUHPT, which is run by Australian Unity, rejected a concerted $2.8 billion takeover bid from unlisted healthcare fund NorthWest Healthcare Properties and its joint venture partner, Singaporean sovereign wealth fund GIC.
AUHPT is now valued at $3.8 billion, and it is the largest unlisted healthcare REIT in Australia. It has more than 10,000 investors and a portfolio of 99 healthcare-related assets across the country. AUHPT’s portfolio has a 98% occupancy rate. Its weighted average lease expiry is 16.4 years.
Last December, AUHPT acquired the land and residential aged care buildings at nine South Australian sites from Bolton Clarke for $220 million.
The offer includes a $150 million non-renounceable rights issue offer to existing investors and a $200 million general offer for new investors.
Australian Unity general manager, healthcare property, Chris Smith, said, “The capital raise will strengthen the fund’s balance sheet to provide funding for upcoming acquisitions and developments.
“Some of the capital will initially be used to reduce the fund’s gearing ratio which, assuming a successful raise, will decrease from 30.5 per cent to about 21 per cent.”
About 37 of AUHPT’s properties were independently valued in February, resulting in a net increase of $29 million on their book values.
“This result highlights the resilience of the portfolio with quality healthcare properties historically coming into their own during periods of economic uncertainty,” Chris said.
