REGISTER YOUR INTEREST NOW!
The Augusta Property Fund is re-launching mid-July (funds due in September). Presentation and webinar details are also expected to be announced shortly.
Investment in the Augusta Property Fund will offer a forecast pre-tax cash return of 6.0%* per annum paid to investors monthly. Importantly, as part of the government’s recently announced stimulus package, tax claims for depreciation of commercial and industrial buildings have been reinstated, a major benefit for investors. Details of the post-tax cash returns are currently being finalised and will be included in the Product Disclosure Statement.
The Initial Asset - Anglesea Medical Centre
The property is located in a prime corner position within Hamilton’s CBD and is in Augusta’s opinion one of New Zealand’s largest private health care centres. The property is home to many of the Waikato’s leading private medical and healthcare tenants including Pathlab, with their facility one of the most advanced laboratories in the southern hemisphere. With 28 tenants, the property offers income diversification with a key feature being the tenants’ commitment to the site with the ten largest having been on site for between 10 and 27 years. The 2.4 hectare site contains three main buildings, benefits from three road frontages and with relatively low site cover along with flexible zoning, provides potential redevelopment and expansion opportunities.
The Healthcare Property Sector
Bayleys Research considers that prospects for the New Zealand medical and healthcare property sector remain attractive. Given New Zealand’s core demographic trends, including population growth, increasing life expectancies and an ageing population, demand for health related services is expected to continue to grow. Healthcare property performance benefits from these long-term demographic drivers, and the fact that health expenditure is often mandatory.
The New Zealand government’s overall health budget has reached a record $20.104 billion, including the largest ever increase in funding to District Health Boards, a $3.92 billion injection to be apportioned over four years. The economy itself is not the key demand driver for the healthcare sector, therefore healthcare property presents desirable non-cyclical and defensive characteristics. By reason of these particular characteristics the sector is considered well placed to outperform other sub-sectors within the property market.
The Fund's Strategy
Augusta Property Fund’s intention is to grow over time. Through this strategy the fund aims to diversify its portfolio by acquiring additional properties, therefore further mitigating the risks to both capital and cashflow that can be associated with property ownership, an even more important consideration in the current economic environment. Importantly, all future investments by the Augusta Property Fund, whether directly owned assets or other property investment entities will be strategically selected for their ability to contribute to the diversification, yield, capital growth and liquidity.