Why Australian Unity Healthcare Property Trust investors rejected $2.8B NorthWest Healthcare takeover

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Australian Unity has retained leadership of its funding vehicle, Australian Unity Healthcare Property Trust (AUHPT).

Rohan Mead (pictured above), Chair of Australian Unity Funds Management Limited, as Responsible Entity of the Australian Unity Healthcare Property Trust (AUHPT), revealed the key elements why investors rejected a takeover bid by Canada’s NorthWest Healthcare.

“The outcome speaks to three key elements that fundamentally matter for AUHPT investors: due process, good governance, and consistent performance,” said Mr Mead.

“Investors have sent a clear message that they support the Board of AUFM to continue to act in their best interests. For more than 21 years’ investors have put their trust in the team to manage these critical healthcare assets on their behalf.”

NorthWest Healthcare withdrew its proposal to buy AUHPT  in the NSW Supreme Court on 14 July, as reported by The Weekly Source.

NorthWest Healthcare made four offers to take over AUHPT, which has grown into one of Australia’s largest unlisted healthcare property funds, with assets in hospitals, medical centres and aged care facilities, worth $2.4 billion.

Mark Pratt, Executive General Manager, Property, Australian Unity, said the outcome is a humbling endorsement of AUHPT’s management and its approach to generating value and delivering long-term sustainable income for investors.

“The strength of AUHPT’s $1 billion development pipeline, Australian ownership of unique healthcare and medical infrastructure, and the very attractive current market conditions for the healthcare real estate sector are also front of mind for many of AUHPT’s unitholders,” Mr Pratt said.

“This was an unprecedented, unsolicited proposal from foreign entities to take over an Australian unlisted property trust comprising thousands of mum and dad investors. Unitholders have had their say and they couldn’t have been clearer,” he said.

The Trust has also been a source of funds for Australian Unity’s growth of its retirement and aged care assets as well.