New Zealand's population is aging – but it's a shock to realise just how quickly and how much. The over-85 age bracket is forecast to rise from 88,000 people in 2020 to 360,000 in 2063 – a four-fold increase.
This growth directly corresponds to the average age of entry into aged care beds in New Zealand and a shortfall in care beds is forecast from 2026 onwards, given current build rates, making this an attractive sector of the property market for investment.
Centuria NZ (formerly Augusta Funds Management Limited) has been one of the leaders in helping thousands of New Zealanders invest in quality commercial and industrial properties, including healthcare related assets, for the past 20 years.
They're part of the ASX 200 listed Centuria Capital Group, with approximately A$20.2 billion of transtasman assets under management* and have both a strong track record and conservative approach.
Following on from successful capital raises across various property sectors – totalling around $240 million last year – they're now seeking $121m from investors for their new investment opportunity, Centuria NZ Healthcare Property Fund Limited (Centuria NZ Healthcare).
The funds will be used to acquire a total of 23 aged care properties located throughout New Zealand, all with new 30-year triple net leases to one of New Zealand's leading and largest aged care focused operators: Heritage Lifecare.
Centuria NZ CEO Mark Francis says the initial 30-year term is highly favourable by New Zealand standards. Combined with a tenant of this calibre in a sector with favourable macro-economic trends he says it provides a long-term stable income stream.
All in New Zealand are being offered the opportunity to become a foundation investor and purchase shares in Centuria NZ Healthcare, with investments beginning with as little as $10,000. The fund is forecasting an initial pre-tax cash distribution of 5 per cent per annum for the financial periods ending 31 March 2023 and 31 March 2024**, paid to investors monthly, along with the potential for capital growth.
Watch a 1 minute video below or click here to watch a 9 minute video with Centuria NZ CEO Mark Francis and leading NZ economist Cameron Bagrie.
Mike Houlker, Head of Bayleys' Investment Products division, which is marketing the fund, says a key feature is that the 30-year leases, with rights of renewal totalling a further 60 years until the year 2112, are structured as "triple net".
"A triple net lease means any costs of capital expenditure, repair, maintenance and other works, whether structural or otherwise, are not Centuria NZ Healthcare's responsibility. Each lease stipulates the tenant has the same liabilities in regards to the premises as if the lessee was the 'owner'. This is widely considered the most landlord-friendly form of lease."
Bayleys' Investment Products manager Samara Phillips says another significant feature of the leases is annual rent reviews that reflect movements in the Consumer Price Index (CPI), subject to a minimum 1 per cent p.a. increase and a 4 per cent p.a. cap.
"This will provide built-in rental growth, increasing rental income annually for the next 30 years and providing a degree of off-set against inflation pressures."
Phillips says the Centuria NZ Healthcare investment opportunity is fully underwritten and is also being structured as a PIE (Portfolio Investment Entity), so investors benefit from a maximum tax rate of 28 per cent, less if your individual prescribed investor rate is lower.
For more information, including a copy of the Product Disclosure Statement for Centuria NZ Healthcare along with a full video, presentation and webinar details visit www.centuriahealthcare.co.nz.
*Assets under management as at 31 December 2021. Includes assets contracted to be settled, cash and other assets.
** Forecast pre-tax cash distribution for the financial periods ending 31 March 2023 and 31 March 2024. Details of how the forecast pre-tax cash distribution is calculated and the risks associated with this investment can be found in the Product Disclosure Statement. The return is not guaranteed and may change in the future.
Centuria NZ Healthcare Property Fund Limited is the issuer of the shares 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 listed 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. Before deciding whether to invest, you should obtain independent financial advice that takes account of your personal financial goals and circumstances. Bayleys Real Estate Limited cannot provide you with any such independent financial advice. Important information about the financial advice service provided by Bayleys Real Estate Limited is available at syndications.co.nz.