Sovereign acquires third aged care investment
Boutique property fund manager Sovereign MF has bought a third aged care property for its Viculus fund.
The latest property, the third for the fund, is in rural Victoria and is a 30-bed Commonwealth funded nursing home.
The property is on a 7,300 square metre site, which will enable the facility to be expanded to 60 beds.
The fund manager will lease the property to aged-care specialist Viculus for an initial lease of 25 years, with two further 25-year options.
Sovereign managing director Michael Grochowski said the latest acquisition was in-line with the fund manager’s philosophy for the fund.
“The fund, unlike others that have some exposure in this sector, does not carry any development, construction or retirement village risk, and as Sovereign is not the operator of the facilities, operator risk is substantially reduced,” he said.
“We are delivering on our growth strategy while still maintaining the criteria of acceptable property for the fund.”
Grochowski said further aged care properties were on the fund manager’s radar in this sector.
“As we continue to accumulate property in this sector greater diversification will be achieved, this creates a very strong foundation for investors,” he said.
The Sovereign Viculus Aged Care Fund recently distributed its first distribution equivalent to 9 per cent net of fees, which was in-line with the forecast in its Product Disclosure Statement.
The fund now has $12 million in assets under management.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
