Offer open date: 9 March 2022
Manager: Centuria NZ (formerly known as Augusta Funds Management Limited)
Centuria NZ Healthcare Property Fund (the Fund) provided investors with the opportunity to gain exposure to the sought-after healthcare property sector, with monthly cash distributions and the potential for capital growth. This offer was open to everyone in New Zealand with a minimum investment of $10,000.
The Fund’s initial acquisition was a portfolio of 23 aged care properties leased to Heritage Lifecare, one of New Zealand’s leading and largest aged care operators in a sector seeing strong and increasing demand with New Zealand’s rapidly aging population. The sector also has high levels of recurring Government funding (estimated at 53% directly from the Government and an additional approximately 24% funded indirectly via residents’ pensions). The properties provided geographic diversification and exposure to both metropolitan areas and regional areas catering to local demand where bed shortages are expected to occur.
All assets benefited from new 30-year triple net leases (meaning the tenant is responsible for all repairs, maintenance and capital expenditure, insulating the landlord from all liability in relation to the properties to the maximum extent permitted by law) providing a long term stable income stream with rights of renewal totalling 60 years taking the final expiry to the year 2112. The leases also provided annual rental growth built in, increasing the rental income every year for the next 30 years. Increases were linked to CPI, offsetting inflation pressure (minimum 1%, maximum 4%).