In April 2022, Centuria NZ Healthcare Property Fund acquired a portfolio of 23 aged care properties throughout New Zealand for a purchase price of $194.9 million, which forms part of the Heritage Lifecare Ltd aged care and retirement village property portfolio. The fund’s portfolio comprises 1,566 care beds.
Aged-care assets
WALE
Care beds
Land area
The above stats are as at 31 March 2024
Heritage Lifecare is one of NZ’s leading and largest aged care operators in a sector seeing strong and increasing demand with NZ’s rapidly ageing 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).
Like the healthcare sector generally, the aged care sector is expected to benefit from population growth, increasing life expectancies and an ageing population. Between 2016 and 2021 there was a 46% increase in Government expenditure on healthcare, growing from $15.6 billion to $22.8 billion. Whilst people over 65 years old currently represent around 16% of the total population, the health services they use account for approximately 42% of public healthcare spending. The age of entry into aged care beds in New Zealand is typically 85 years and above. The growth of this age segment is expected to be rapid, with a forecast rise from 88,000 people in 2020 to 360,000 in 2063 (+309% growth).
The Fund has a strategy to grow the value of the portfolio through the acquisition of further healthcare related properties. The ability to source value and earnings accretive acquisitions will help to drive future returns. Any future properties will only be purchased if they are expected to maintain or increase current returns to shareholders, provide diversification benefits or provide potential capital growth.
Past performance is not necessarily indicative of future performance. Returns may vary and are not guaranteed. No applications are currently being accepted for investment in Centuria NZ Healthcare Property Fund Limited and its latest offer has closed. Any indication of interest will not involve an obligation or commitment to acquire a financial product. If any future offer is made, it will be made in accordance with the Financial Markets Conduct Act 2013. Prior to making any investment in the future, prospective investors are recommended to seek professional advice from a Financial Adviser which takes into account their personal circumstances before making an investment decision.
