Australian Unity Raises $250m for Property Pipeline

Australian Unity's $1.3 billion unlisted property trust has raised $250 million within three days in order to fund future development and acquisition opportunities.

The Australian Unity Healthcare Property Trust, the largest healthcare property fund in the country, closed applications for the issue of new funding units a week ahead of schedule following strong interest from new and existing investors.

The trust commenced almost 20 years ago.  It has more than 10,000 investors and owns 42 healthcare assets across Australia’s eastern seaboard.

This year, the trust has raised a total of $430 million in two tranches in the space of five days. This includes more than $170 million raised within 30 hours in May this year, in addition to the latest $250 million offer.

Mark Pratt, general manager of property at Australian Unity, acknowledged the support of around 1800 new investors with approximately 80 per cent of the $250 million raised coming from retail, self managed super funds and high net worth investors.

“The overwhelming response confirms the market’s support for Australian Unity’s investment approach, asset quality and the strength of the management team led by Chris Smith," he said.

Funds will also be deployed for the greenfield development to construct the specialist public health facility which forms part of the $1.1 billion Herston Quarter development in Brisbane.

The Herston Quarter project is set to provide Queenslanders with access to state-of-the-art health, hospital and aged care services, as well as creating scope in the future for international standard research and educational facilities.

The fund re-opened in May this year to raise funds for its development pipeline and just prior completed re-valuations on 11 properties in its portfolio resulting in a net increase of $25.76 million (or eight and a half per cent) from the properties' book value immediately prior to valuation.

[Related reading: Australia’s Largest Healthcare Fund Re-Opens For Development Pipeline]

Main image: Lady Lamington Nurses' Home located on the site of the Herston Quarter Development. Source: Australian Unity