Group Homes Australia and Centuria Healthcare Announce Property Partnership
Centuria Healthcare agrees to fund the purchase and development of Group Homes Australia residences. The properties will provide attractive diversification benefits to the existing Centuria Healthcare Aged Care Property Fund No. 1 portfolio and exposure to a progressive model of specialist dementia care and highly reputable aged care operator.
Group Homes Australia, the first Australian model to offer dementia and high care in a group-home environment, has entered into a partnership with Centuria Healthcare. The partnership, designed to drive future growth, has Centuria Healthcare agreeing to fund the purchase and development of Group Homes Australia (GHA) residences through its existing Centuria Healthcare Aged Care Property Fund No.1 (Fund). The agreement will offer Fund investors exposure to a dementia and high care property investment, coupled with the attractive fundamentals of the residential property market – whilst offering commercial income yields. The Fund will enter into a long-term lease with Group Homes Australia at each property, with a preliminary commitment to fund $50 million of property acquisitions. Centuria Healthcare’s Managing Director Andrew Hemming says: “We are excited to partner with GHA. We continue to show interest in property investments which illustrate strong underlying demand drivers. GHA broadens our exposure in the aged care sector to dementia and high-care residents in an innovative and exciting format. Whilst this care model is new in Australia, it has proven to be successful in the US and in parts of Europe. We feel privileged to be able to facilitate an expansion of options for those people living beyond a diagnosis of dementia in the Australian community.”
Group Homes Australia is a pioneer in the field of dementia and high care, offering an alternative to the traditional institutional model. Group Homes Australia is currently operating eight homes in Sydney’s North Shore, Northern Beaches and Eastern Suburbs. CEO and founder of Group Homes Australia, Tamar Krebs adds: “We are delighted to be working with Heathley. This partnership will deliver significant benefits to our ability to make this innovative model of care available to more residents nationally. As we consider our national expansion options, there are clear benefits in terms of the deep networks of high net worth individuals and institutional investors that Centuria Healthcare Limited (previously Heathley Limited) has built over its 40 year history. Our homes represent an exciting point of difference for Centuria Healthcare’s investors.”
Group Homes Australia will continue to have sole operating responsibility for the homes under the new arrangement.