starting distribution yield
Secure your investment in the growing healthcare sector. The Centuria Heathley Direct Medical Fund No.2 (Fund) will have a forecast starting yield of 6.56% p.a.1,2.
The Fund is a multi-asset, closed-ended unlisted healthcare property fund with investments in assets located across three states. Featuring a Weighted Average Lease Expiry of 7.9 years3, the properties are 99.7% occupied by high quality healthcare tenants including Queensland Health, Healius, Vision Eye Institute and Genesis Care.
There are 15 properties in the Fund including day hospitals, specialist centres, medical centres and medical offices.
The healthcare property sector is underpinned by growing non-discretionary demand for healthcare services as a result of:
The healthcare property sector has delivered strong returns and experienced relatively low volatility when compared to other property sectors. The non-discretionary nature of healthcare demand limits exposure to economic downturns.
Stable revenue streams (backed by government funding) allow tenants to commit to longer term leases, creating greater revenue stability.
Centuria Heathley focus on healthcare tenants with sustainable business models that are reducing costs for the healthcare system and patients.
Centuria Heathley take a partnered investment approach with operators, through providing aligned capital.
# The “Healthcare” category is based on the IPD Australia Quarterly Healthcare Index, which provides a broad measure of investment returns for the healthcare property market in Australia and tracks the investment performance of 92 healthcare assets representing $2.6 billion. Returns with the IPD Healthcare Index are not representative of the performance of any single fund, including the Centuria Heathley Direct Medical Fund No. 2.
The Fund is forecast to provide attractive, income distributions of 6.56%p.a.1,2 (annualised) in FY20 and growing to 6.74%p.a.2 in FY21, with distributions being paid on a quarterly basis. Forecast returns are also anticipated to be tax deferred.
The minimum investment in the Fund is $50,000. Centuria Heathley may accept investments that are less than this amount at its discretion.
The Fund is a closed ended fund with anticipated close date of June 2024.
Investment Period: The Fund will aim to acquire the properties within a two and a half year period, and will end in December 2019, unless determined earlier by the manager.
Portfolio Management Period: Following the completion of the Investment Period, the Fund will have a Portfolio Management Period ending in June 2024.
No redemption facility is available.
Centuria Capital Group own 63.06% of Centuria Heathley. Centuria Capital Group is an ASX listed specialist fund manager with $6.2 billion4 of assets under management.
Centuria’s unlisted property business has a 20 year heritage and in that time, has completed 42 unlisted property funds.
Centuria Heathley Asset Management Limited will be the responsible entity for the fund. They are a highly experienced team from a broad range of backgrounds including property funds management, healthcare infrastructure and investment banking. They have completed around 50 healthcare property transactions since 2013 with a total acquisition value of over $650 million.
Centuria Heathley have a disciplined approach to investment opportunities with a focus on healthcare tenants with sustainable business models that are reducing costs for the healthcare system.
They have a partnered investment approach with operators through providing aligned capital.
All investments in unlisted property funds carry risk. As the Fund invests in commercial property, it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the Product Disclosure Statement and understand the risks of investing.
* As at 30 June 2019.
(1) Annualised forecast yield for FY20 growing to 6.74%p.a.in FY21. The distribution yield is calculated on an issue price of $1.0316 and is therefore subject to change.
(2) Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement. As such, returns may be affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.
(3) By income as at 30 June 2019.
(4) As at 31 July 2019.
Disclaimer: Issued by Centuria Heathley Asset Management Limited (ABN 40 003 976 672, AFSL 246368) (CHAML), a subsidiary of Centuria Heathley Limited (ABN 74 001 477 505) (CHL). CHAML is the responsible entity of Centuria Heathley Direct Medical Fund No. 2 (Fund), of which a product disclosure statement (PDS) is available upon request from email@example.com. An investment in the Fund carries risks associated with an investment in direct property including the loss of income and capital invested. The risks relating to an investment are detailed in the Fund’s PDS and CHAML strongly recommends that the PDS for the Fund be read before any investment decision is made.
The information in this communication is general information only and does not take into account the financial circumstances, needs or objectives of any person. CHL and its subsidiaries, including CHAML, receive fees from investments in its property funds. Past performance is not a reliable indicator of future performance.