Private medical centres have increasingly become attractive investments for New Zealanders – and a fund offering exposure to Waikato's largest private medical and healthcare complex, Anglesea Medical Centre in Hamilton, is available to investors.
Investment is available from a minimum of $10,000 through Centuria NZ (formerly Augusta Funds Management Limited), one of the leaders in helping thousands of New Zealanders access quality commercial and industrial assets, including healthcare properties, for the past 20 years.
One of their offerings, Centuria NZ Property Fund (formerly Augusta Property Fund)has re-opened for investment this week, seeking to raise $50 million of capital to reduce the fund's bank debt to zero to provide it with balance sheet capacity for additional acquisitions and to develop and add value to its largest asset, the Anglesea Medical Centre in Hamilton.
Mark Francis, Centuria NZ's CEO, says in recent years there has been significant growth in private sector medical centres, brought about by increases in New Zealanders' wealth, private medical insurance and concerns about the adequacy of services and waiting times at public hospitals.
The increased demand for private healthcare services is forecast to continue – benefitting the properties from which the sector operates, contributing to the desirable nature of these assets, he says.
Investors are being offered a forecast pre-tax cash distribution of 5.09 per cent per annum for FY22 and FY23, paid monthly. The forecast distribution is to be partially funded by capital until additional acquisitions are made, as set out in more detail in the Product Disclosure Statement.
"Centuria NZ Property Fund's purpose is to provide investors with the opportunity to invest in a portfolio of strategically selected directly owned assets, along with other property-related investments in the longer term, within the one investment vehicle," says Francis.
"The intention of the fund is to grow over time to continue to increase investors' exposure to a variety of property investments while providing regular monthly cash distributions and the potential for capital growth."
Francis says previous investors have already benefitted from capital growth with the fund's first and highest value asset – the Anglesea Medical Centre, purchased last year for $55m and valued on August 24 at $59 million.
"We view healthcare as an attractive sector of the property market with non-cyclical, defensive characteristics and strong forecast growth," he says.
Centuria NZ (then known as Augusta) was established in 2003 and manages approximately NZ$2.5 billion of assets across 46 property funds and other shared property ownership structures. In 2020, Augusta and the ASX listed Centuria Capital Group (CNI, one of Australia's largest property fund managers) merged to create a leading Australasian property fund management platform, with approximately A$18 billion of transtasman assets under management on behalf of investors.
Francis says Centuria Capital NZ has provided a firm commitment to subscribe for $1,230,500 of the units issued under the new offer (being 1,150,000 units) in addition to the 3,850,000 units it already holds.
"This means Centuria has considerable skin in the game and that the fund manager's and investors' interests are aligned.
"The offer is also fully underwritten, providing assurance to investors that it will proceed. To provide additional assurance and to mitigate the effects of any further Covid-19 lockdowns, Centuria Capital NZ will provide a rental underwrite up to $500,000 for all properties for a period of six months from the initial allotment of units."
Click here for more information.
Bayleys' Head of Syndication & Investment Products, Mike Houlker, says the offer provides all levels of investors with exposure to the commercial property sector: "A wide range of investors have participated in previous Centuria NZ capital raises, from those with the minimum $10,000 investment through to those with several million invested across multiple offerings."
"In line with the commercial property sector as a whole, Centuria NZ Property Fund has seen strong demand from investors with the initial offer last year oversubscribed within 2 weeks of opening with many investors missing out."
This second capital raise will provide more investors with the opportunity to participate in the early stages of the fund – which now has three properties under direct ownership and is looking to build a substantial portfolio of diversified investments across different property sectors, tenancies and geographical locations.
Cameron Bagrie, a leading economist with over 20 years' experience (including 11 years as Chief Economist at ANZ Bank), says he expects the healthcare sector to perform strongly.
"The New Zealand commercial property market has performed well across the board, generating a total return (income and capital growth) of 14.9 per cent in the 12 months to June 2021. Rising interest rates will likely temper that growth but the right assets, in strong sectors and positions, that offer opportunities to add value will remain in high demand" he says.
"The health and social services sector has been an outperformer in terms of real, that is, inflation adjusted, economic growth for the past thirty years and I expect healthcare to continue to grow at a faster rate than the economy as a whole over the coming decades."
"The health sector is also less sensitive to movements in the economic cycle, maintaining positive momentum when the economy has been in recession such as during the Asian crisis of the 1990's or global financial crisis of 2008/09."
The offer is being marketed by Bayleys' Syndication & Investment Products team of Mike Houlker, Samara Phillips, Sarah Prebble and Shirley Leung. A webinar along with presentations will be held around the country in late November and December outlining the offer.
For a copy of the Product Disclosure Statement for this offer, webinar and presentation details and more information visit www.centuriainvestments.co.nz
Centuria Funds Management (NZ) Limited is the issuer of the units to be issued under the offer to which this advertisement relates. A Product Disclosure Statement for the offer, which sets out the terms and conditions of the offer, is available, and can be obtained by contacting the Bayleys Real Estate agents mentioned in this advertisement. Nothing in this advertisement constitutes an invitation to subscribe for, or an offer of shares, securities or financial products to any person, in any country, in which it would be unlawful to do so. Terms used in this advertisement have the same meaning as defined in the Product Disclosure Statement, unless the context suggests otherwise. Prospective investors are recommended to seek professional advice from a Financial Adviser, which takes into account their personal circumstances before making an investment decision. The selling agents are not providing personalised advice.