AU bolsters SA aged care presence with $220m deal

Allity Smithfield, north of Adelaide.

Australian Unity’s flagship Healthcare Property Trust (AUHPT) has snapped up nine South Australian aged care investments with a 20 year leaseback to Bolton Clarke.

Allity Smithfield accommodates 72 residents.

The $220 million deal reflects a 5.49 per cent net passing yield.

Eight properties are in Adelaide with the other in Victor Harbour; all up they cover 11.5 hectares, with the land alone worth $57.5m.

Following settlement, the $3.4 billion trust will hold 22 facilities of this type, in New South Wales, Queensland and South Australia, all up containing 2788 beds.

By value, aged care investments would increase to represent 18pc of the AUHPT portfolio; the bulk of its assets using this measurement are hospitals (58pc) and medical centres (24pc), it said.

The Bolton Clarke deal comes a month since AU purchased a swag of apartments for its two year old Disability Accommodation Fund, which is part backed by GreenFort Capital, and two new centres for the Childcare Property Fund, which is approaching a $100m value.

AUHPT expands in SA

With the nine Bolton Clarke assets – which include Allity branded properties it purchased from Archer Capital last year – AU holds 12 South Australian aged care investments.

“The newly acquired aged care properties comprise 95pc single rooms and are in densely populated catchment areas with ageing demographic profiles,” AU general manager, Healthcare Property, Chris Smith, said.

“In as little as five years, some 60,000-80,000 Australians will turn 80 every year,” he added.

“Given the strong macro-economic drivers, population shifts and alignments with our existing portfolio, fit-for-purpose aged care properties present important opportunities for investors in AUHPT,” according to the executive.

“The quality of the assets and the secure long-term lease arrangements will provide investors a compelling, long-term income stream through to November, 2042”.

Bolton Clarke Group chief executive officer, Stephen Muggleton, said the real estate sales will allow it to grow its business quicker (story continues below).

A beauty salon at Allity Walkerville (also pictured top).

“Our long-term focus has been on growing our services to meet the needs of ageing Australians,” he added.

“This is an innovative way we can accelerate this growth,” according to the executive.

“It enables us to expand much-needed aged care services into high demand locations and invest in our capital works development pipeline.

“Importantly there will be no change as a result of this agreement for our residents and employers or the services we provide in South Australia – it will continue to be business as usual”.

AUHPT is cashed up after recently increasing its debt facility 30pc to $1.3b.

Following the latest deal, its gearing is 29.1pc.

It was represented by Hall & Wilcox.

Minter Ellison and KPMG acted for Bolton Clarke.

The deal comes a month since HealthCo and Mater sealed a partnership at Brisbane’s Springfield Hub – with the healthcare group set to own 20pc of an asset it also leased for 10 years.

In late 2020, Mater sold an unbuilt Newstead, Brisbane, office with a leaseback to Charter Hall’s Social Infrastructure REIT for $122.495m.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of