AUI refinances healthcare fund
Investor distributions in the Australian Unity Investments Healthcare Property Trust will be boosted by a $200 million refinancing loan, according to AUI.
The new three-year loan is at a lower interest rate than the previous loan of the same amount, according to AUI. The new financing arrangements are provided by four top-tier banks, three of which took part in the previous facility, the group stated.
There was a good level of competition among the banks for the loan, showing that conditions had improved and demonstrating the quality of the assets, according to Carolyn Ireland, AUI’s head of capital markets.
Ireland estimated investor distributions would increase more than 1 per cent, taking the annual distribution to close to 8 per cent.
AUI head of healthcare and retirement property funds Chris Smith predicted a standout year for healthcare property on the back of a positive first half of 2011 and strong overseas investor interest.
“Healthcare property has maintained its value very well and given investors excellent returns, despite the recent economic problems and softening property values in some sectors and locations,” he said.
The ageing population would generate ongoing elevated need to medical and health services with high long-term occupancy demand contributing to strong yield for investors, he added.
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