Property Of The Week

**12 MONTH RENTAL GUARANTEE**


Only 6 apartments in Mordialloc, one of Melbourne’s most established bayside suburbs.
  Please note: To access all documentation you need to be registered prior to downloading files. Simply REGISTER HERE to receive your username & password.

Not a member yet? - Register NOW


Australian Unity Healthcare Property Trust

Australian Unity Healthcare Property Trust
Rebate n/a
Minimum Investment $500

About the Fund
The Australian Unity Healthcare Property Trust (‘Fund’) brings together the Australian Unity Group’s understanding of the healthcare sector as well as the investment management expertise and experience of their property team. This powerful combination means that they are uniquely qualified to manage healthcare property investments.

pdf download Product Disclosure Statement
pdf download Fund Update
pdf download Performance Summary
pdf download Annual Report
   

The Fund is a property fund with a primary focus on delivering regular income, plus the opportunity for long-term capital growth.

The Fund combines investor contributions and borrowed money to invest in a diversified portfolio of primarily Australian healthcare related property assets.

The Fund aims to cover the cost of borrowings from the income earned from the additional investments. Through this process, the Fund aims to enhance the level of return. The level of borrowings will generally range between 40% 60% of the Fund’s gross assets.

The Fund offers three classes of units: 

Retail Units
Wholesale Units
Class A Units

Class A Units provide enhanced withdrawal opportunities to investors compared to Retail and Wholesale Units. This is achieved through a separate reserving of cash or similar investments (typically around 20%) from Class A Unit applications received.

The Fund was the first of its kind in the market and has been operating since June 1998.
What does the Fund invest in?

The Fund primarily invests in a diversified portfolio of healthcare property and related assets including direct property, managed funds (such as unlisted and listed property trusts and property syndicates) or companies that predominantly hold healthcare property.

The Fund may also invest in similar international healthcare related assets in countries with healthcare systems and property markets with attributes similar to Australia.

In respect of Retail and Wholesale Units, the Fund typically holds 75-100% of its assets in direct property and up to 15% in listed or unlisted property investments. The balance is held in cash and similar investments.

In respect of Class A Units, the Fund typically holds 20% of the Class A Units net asset value separately in a special cash reserve. This level may fluctuate from time to time depending on cash flows and movements in asset values. Of the balance of assets remaining in respect of Class A Units, the Fund typically holds 75-100% of the assets in direct property, up to 15% in listed or unlisted property investments and the remainder in cash and similar investments.

Derivatives
It is not the Fund's current policy to use derivatives for gearing purposes or for speculative activities for this Fund. They may use derivatives in the Fund for implementation of interest rate risk strategies and management of the Funds’ interest rate exposures.

The Fund may fully or partially hedge the income stream and capital value of any foreign investments from the foreign currency back to Australian dollars to manage exchange rate risk.

What is the Fund’s investment strategy?
In acquiring and managing the property assets of the Fund the objective is to ensure the Fund takes advantage of trends in the healthcare sector both locally and internationally.

Decisions to invest in healthcare property and related assets are premised on the asset’s ability to deliver attractive returns, increase diversification and relative liquidity. The Fund aims to achieve this by:
 

Acquiring healthcare or healthcare-related properties that are leaders in their particular geographical area;
Selectively developing suitable long-term expansion and/or improvement strategies for the properties;
Ensuring the Fund maintains adequate and multiple levels of diversification including by geographic location, property type and the type of healthcare services provided by each tenant;
Building strong, secure relationships with tenants that have relevant experience and expertise in the healthcare sector;
Where practical, putting in place carefully structured, long-term leases, with the aim of achieving stable and predictable rental income as well as growth in rental income over the long-term; and
Working closely with asset consultants to identify quality healthcare related assets both locally and internationally.

Structure of the Healthcare Property Trust
Investor applications and borrowings are pooled together to purchase healthcare property and related assets for the Fund.

Rent from the Fund’s properties, income from other assets and interest earned on cash holdings, generate income for the Fund. This income is used to meet interest expenses on borrowings, management fees, and ongoing Fund expenses. The Fund may also retain some income as a provision for future expenses, capital expenditure or to reduce borrowings. Once these costs and provisions are met, the remaining income is distributed to investors.

The capital growth (or loss) on your investment is largely attributed to movement in the value of of the Fund’s properties, changes in value of other assets and the level of borrowings the Fund has.

Borrowings
The Fund borrows to finance and maintain new and existing assets, to develop those assets, as well as to provide liquidity for operating purposes. Under the Fund’s constitution and law, the Fund has the power to: 

borrow and raise money for the purposes of the Fund and to grant security over the Fund’s assets; and
to incur all types of obligations and liabilities.

Generally, interest costs relating to the borrowings will be met from the gross income of the Fund prior to the payment of distributions to investors.

The lender’s rights to recover the total due under the loan, and then the rights of any creditors of the Fund, will rank ahead of all investors.

Importantly, the lender does not have any recourse to investors.

Distributions
Distributions are currently met from net realised income and net realised capital gains and are paid quarterly.

It is not
The Fund's intention to source distribution payments from sources other than net realised income and net realised capital gains, although it may do so if it considers it to be in the interests of investors (for example if rental income is suddenly reduced unexpectedly, or unplanned costs are incurred) and where payment from that source is sustainable. The Fund would notify investors if this occurred.

Withdrawals

Withdrawals Retail & Wholesale Unit investors
In normal operating conditions Retail and Wholesale Unit withdrawals are paid quarterly. The maximum total amount available for withdrawals each quarter is 2.5% of the total net value of units on issue for the relevant class (although
The Fund has the discretion to alter this amount). If this amount is exceeded, withdrawals may be met on a pro-rata basis.

Where a pro-rata payment occurs, investors will need to reapply in a subsequent withdrawal period if they wish to withdraw any further amount.

Withdrawal requests can be made on any day up to 3.00pm on the 28th day of each quarter end date (being 28 February, 28 May, 28 August and 28 November or the next Melbourne business day if the 28th is a non business day) to receive the withdrawal price effective for the 28th of that quarter end date. The Fund will endeavour to make withdrawal payments within five days after the quarter end date.

Withdrawals – Class A Unit investors
In normal operating conditions Class A Unit withdrawals are paid monthly. Monthly withdrawals will be met from the cash reserves held specifically for Class A Units.

Withdrawal request can be made on any day up to 3.00pm on the 28th day of the month to receive the withdrawal price effective for the 28th of that month.
The Fund will endeavour to make withdrawal payments within five days after the end of month.

In abnormal operating/market conditions the demand for withdrawals may exceed the amount of cash reserve held for Class A Units. Where this occurs, withdrawals will instead be met on a quarterly basis and will be subject to a quarterly cap of 2.5% of the net assets attributable to Class A Units (although
The Fund has the discretion to alter this amount). If this amount is exceeded, withdrawals may be met on a pro-rata basis. Where a pro-rata payment occurs, investors will need to reapply in a subsequent withdrawal period if they wish to withdraw any further amount. Quarterly withdrawals will be met from the Fund’s general cash holding.

Withdrawals – All investors
Where
The Fund is required to sell property assets, it may take longer for you to receive your withdrawal proceeds. In extreme cases it could take 12 months or longer for you to receive your money.

While the Fund is liquid, the Fund’s constitution allows up to 365 days to meet withdrawal requests.

Suspension of withdrawals
If
The Fund cannot sell property assets within 365 days to meet withdrawal requests, the Fund will become illiquid and quarterly withdrawals will be suspended. If this occurs, you can only withdraw when The Fund makes a withdrawal offer available, in accordance with the its constitution and law.

Substantial investor withdrawal requests
In order to ensure reasonable equity among investors, where any single investor requests withdrawals in excess of 5% of the total number of units on issue of a relevant class during a withdrawal period,
The Fund may deem those requests to be a single withdrawal request for 5% of the total number of units on issue for that class or such higher amount as The Fund determines at its absolute discretion.

Portfolio details
The Fund has diversity in locations, tenants, and lease terms. It believes that, through diversification, consistent income returns and capital growth can be achieved over the long term and through a range of economic cycles (growth and contraction).

The Fund’s composition and diversity will change over time as properties are acquired or disposed and tenancies are re-let.

Direct property portfolio as at 31 December 2008

(1) Leasehold, expires 30 June 2012 with 25+25+24 year options.
(2) Includes a rehabilitation farm at Stumpy Gully Road, Moorooduc.
(3) Includes a parcel of vacant land, not leased to Ramsay Health, adjoining the hospital valued at $1.0 million as at May 2008.
(4) Includes acquisition costs incidental to the purchase of the properties. Includes a parcel of vacant land located at Willetts Road, Mackay valued at $0.8 million as at May 2008.
(5) Valuation on an ‘as is’ basis
(6) Actual purchase price shown. Independent valuation subsequent to purchase has yet to be obtained.


Important information
This investment product is issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AF
S Licence No. 234454 in its capacity as Responsible Entity. This information is intended only to provide a broad summary of this financial product. Investment decisions should not be made upon the basis of its past performance or distribution rate, since future returns will vary. You should refer to the current Product Disclosure Statement (available above) if you wish to know more about this product. The information provided here was current at the time of publication only.

return to previous page