1 No. H E AT H L E Y D... M E D I C A L F...

H E AT H L E Y D I R E C T
MEDICAL FUND
THEMATIC INVESTMENT
IN MEDICAL PROPERTIES
–Exposure to the strong fundamentals
of the Medical Sector
–Robust medical tenants on long
term leases
–Forecast Distribution of 8% p.a*. for
the years ending 30 June 2015 and
30 June 2016
*Please refer to “Important Notices”
1
No.
HEATHLEY DIRECT MEDICAL FUND No.1
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INTRODUCTION
Heathley Asset Management Limited is seeking to raise
$11 million to acquire four properties (Seed Properties) for
Heathley Direct Medical Fund No.1 (Fund). The Fund will
acquire a portfolio of medical-related direct property over
a 2 year period (Investment Period), up to a value of
$150 million and following the Investment Period, hold
the portfolio for a fixed period of 5 years (Portfolio
Management Period).
FORECAST RETURNS
THE FORECAST DISTRIBUTION BASED ON
THE SEED PROPERTIES WILL BE 8.00% P.A*.
Forecast Distribution of 8% p.a. for the years ending
30 June 2015 and 30 June 2016 based on the Seed
Properties. Distributions will be paid quarterly in arrears.
The Fund will aim to provide investors with consistent income
derived from long-term leases to quality medical tenants,
and capital growth by active management. Providing scale of
investment within a tightly held sector is aimed at diminishing
risk through diversification of tenants, properties and services
whilst increasing potential exit strategies.
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INVESTMENT RATIONALE
THEMATIC INVESTMENT IN MEDICAL
PROPERTIES
The management at Heathley have identified the
medical property sector as a sound investment for the
following key reasons –
– Growing level of tenant demand based on key
demographics (ageing population)
Fragmented ownership which should benefit from
–
increased concentration and professional management
Potential to form a partnership with an operator or
–
developer to provide a pipeline of investment opportunities.
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INVESTMENT CRITERIA
The Fund’s investment criteria will be as follows –
Property type: Medical Centres, Specialist Centres and
Small Private Hospitals
Location: All Properties will be located in strategic locations
that have demographics supportive of demand for healthcare
Tenants: Various medical operators such as GP clinics,
specialist suites or larger healthcare operators
Fund WALE: Long-dated WALEs will be targeted to provide
certainty of income for the life of the Fund and provide an
attractive lease tail on sale to attract potential purchasers.
FUND STRUCTURE
A TWO YEAR INVESTMENT PERIOD FOLLOWED BY A FIVE YEAR PORTFOLIO MANAGEMENT PERIOD
ESTABLISHMENT
OF THE FUND
INVESTMENT
PERIOD COMPLETE
INVESTMENT PERIOD
The Fund will continue to acquire property
up to a value of $150 million
YEAR 1
YEAR 2
PORTFOLIO MANAGEMENT
PERIOD COMPLETE
PORTFOLIO MANAGEMENT PERIOD
Consistent income derived from long-term leases and
capital growth by active management
YEAR 3
The Fund will aim to acquire $150 million of gross assets
within the Investment Period of 2 years.
The Fund will continue to raise equity for the duration of the
Investment Period to fund acquisitions.
YEAR 4
YEAR 5
YEAR 6
YEAR 7
Following the completion of the Investment Period, the Fund
will have a Portfolio Management Period of 5 years. At the
completion of the Portfolio Management Period, the Investors
will vote to liquidate or retain the Fund.
*Please refer to “Important Notices”
HEATHLEY DIRECT MEDICAL FUND NO.1
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SEED PROPERTIES
– 4 PROPERTIES
– 100% LEASED
CHERMSIDE QLD
– STRATEGIC HEALTHCARE LOCATIONS
CARDIFF, NSW
MILDURA, VIC
– $ 19M COMBINED PURCHASE PRICE
87-89 LANGTREE AVENUE, MILDURA VICTORIA
SYDENHAM, VIC
547 MELTON HIGHWAY, SYDENHAM VICTORIA
$3,900,000
Contract Price
$4,150,000
Use
GP Clinic
Use
Pathology
Occupancy
100%
Occupancy
100%
Key tenants
– TriStar Medical (93% of NLA)
– Mildura optical (7% of NLA)
Key tenants
– St Vincent’s Hospital (Melbourne) Ltd
100% of NLA)
WALE by income
6.1 years (as at 31 Oct 2014)
WALE by income
3.6 years (as at 31 Oct 2014)
Contract Price
The property is located in the retail heart of Mildura and
comprises a two level commercial building housing a TriStar
Medical Group GP clinic and Mildura Optical.
The property is a modern and securely leased medical centre,
purpose built to accommodate a high grade fitout for the current
tenant. The property features high exposure to Melton Highway
and Calder Park Drive with on grade parking for 30 vehicles.
LOTS 4, 5 & 6, 956 GYMPIE ROAD, CHERMSIDE QUEENSLAND
52 PENDLEBURY ROAD, CARDIFF NEW SOUTH WALES
Contract Price
$5,300,000
Contract Price
$5,650,000
Use
Radiology / Pathology / Café
Use
Private Hospital/Private Clinic
Occupancy
100%
Occupancy
100%
Key tenants
Lot 4 – Sonic Healthcare (27% of NLA)
Lot 5 – Nikas (Café) (11% of NLA)
Lot 6 – Southernx Imaging (62% of NLA)
Key tenants
– Healthe Care & Pendlebury (76% of NLA)
– Management Services (24% of NLA)
WALE by income
4.6 years (as at 31 Oct 2014)
WALE by income
5.8 years (as at 31 Oct 2014)
The strata lots form part of the ground floor of the Chermside
Medical Complex directly adjacent Westfield Chermside
Shopping complex in Brisbane’s northern suburbs. The
Building consists of a number of strata lots totally dedicated
to medical tenants and users.
The property comprises a two storey, 13 bed private hospital
with parking for 52 vehicles and a dedicated ambulance area.
The property is located in Cardiff, a suburb approximately
15km from Newcastle’s CBD.
SINCE 1990, HEATHLEY HAS ACQUIRED OVER
$800 MILLION OF COMMERCIAL PROPERTY ON
BEHALF OF INVESTORS. HEATHLEY CURRENTLY
MANAGES 15 PROPERTIES ACROSS 7 FUNDS WITH
A COMBINED VALUE OF $280 MILLION.
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KEY DATES
Offer Open
24 October 2014
Initial Settlement
11 November 2014
Close of Investment Period
November 2016
CONTACT DETAILS
For further information or if you have any questions related
to the offer, please contact:
John Taylor
Phone – (02) 8247 7005 Mobile – 0405 448 595
Email – [email protected]
Mark Howard
Phone – (02) 8247 7007 Mobile – 0439 789 069
Email – [email protected]
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or visit our website www.heathley.com.au
ABOUT HEATHLEY
Heathley was established in 1977 to provide specialised managed investment services to a niche market of high income earners
and high net worth individuals.
Since 1990 Heathley has specialised in unlisted property syndication, and has completed 26 funds with a combined value of over
$800 million. Heathley currently manages 15 commercial and industrial properties across 7 funds, with a combined value of $280 million.
The Directors and senior management of Heathley have extensive experience in funds management, property and banking. This
includes the assessment of passive and development property investment opportunities, and the establishment of investment
funds and property finance.
For further information on the group, please visit www.heathley.com.au
IMPORTANT NOTICES
This Fund Summary is issued by Heathley Asset Management Limited ABN
40 003 976 672, AFSL 246368 (Heathley), the proposed responsible entity of
Heathley Direct Medical Fund No. 1 (Fund).
The information contained in this Fund Summary is of a general nature only.
It has been prepared without taking into account your particular investment
objectives, personal circumstances, financial situation or needs. When making
decisions in relation to your own personal circumstances and objectives, you
may wish to seek independent financial advice. This Fund Summary is also
not intended to be, and should not be construed in any way as, investment,
legal or financial advice.
This Fund Summary is not an exhaustive summary of the terms of the offer.
Heathley may update the terms of the Fund from those in this Fund Summary.
You must read the Product Disclosure Statement for the Fund, including the
Risks section, before making a decision in relation to the Fund.
Heathley does not guarantee any income or capital return from the Fund.
There can be no assurance that the Fund will achieve results that are
consistent with investment performance of previous investments or that the
investment objectives for the Fund will be achieved.
The forecast return is based on the Seed Properties. As other properties
are to be acquired over the Investment Period, the actual return may vary.
The forecast is calculated after fees and before tax. The forecast is based
on various assumptions and the ability to achieve the forecast is subject to
various risk factors. Investors should consider the assumptions and risks set
out in the PDS.