Australasian property fund manager Centuria is looking to raise $121 million to buy 23 properties offering services for rest homes with hospital and specialist care.
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The properties will be owned by Centuria NZ Healthcare Property Fund and were part of Centuria's recent $291m purchase of Centuria NZ Healthcare Property Fund 38 aged care facilities run by Heritage Lifecare.
The balance of those properties would be allocated to an Australian fund.
Centuria NZ chief executive Mark Francis, who was also a director of Centuria NZ Healthcare, said Heritage Lifecare's occupancy rates compared favourably to key competitors.
"The aged care industry in New Zealand is characterised by government mandated care fees and high levels of recurring government funding," Francis said.
"Increased demand along with constrained supply is forecast in the industry, with a shortfall in care beds expected to emerge from 2026 onwards given current build."
The portfolio would be purchased at $192.2m and had a valuation of $194.9m as of 22 December 2021, with long term leases in place.
Francis said the fund had a $10,000 minimum investment, and offered an initial annual pre-tax cash distribution of 5.00 percent for the year ended March 2024, with potential for capital growth.
"The intention of the Centuria NZ Healthcare fund is to grow over time and to increase investors' exposure to a variety of healthcare real estate," he said, adding there was an opportunity to partner with Heritage Lifecare in other developments.
"All future investments will be strategically selected for
their ability to continue to increase diversification within the healthcare real estate sector and contribute to the yield and capital growth of Centuria NZ Healthcare."