Homepage
PR Newswire
05-03-2014, 10:00 PM
Ezy eyes $400m nursing home portfolio drive
SARAH DANCKERT THE AUSTRALIAN MARCH 06, 2014 12:00AM
SINGAPORE’S Ezyhealthcare Trust Management is in talks to buy “several” nursing homes and retirement villages to seed a new trust that will be listed on the Singapore exchange.
The group, co-founded by former Allco Singapore head Michael Dwyer, is looking to build up a portfolio of Australian healthcare properties worth up to $400 million ahead of its listing later this year.
Ezyhealthcare has teamed up with Japanese real estate fund manager Genkai Capital Management, which has taken a cornerstone investment in the Singapore company.
The venture is also looking to acquire healthcare properties in Japan.
The trust plans to lease the properties it buys back to the operators. It will also develop properties for lease as well. The majority of aged-care and retirement village operators own the properties underpinning their businesses in Australia to offset accounting regulations that require bonds and deferred management fees from residents as liabilities.
However, it is understood that a new raft of regulation governing the aged-care sector in Australia will alter the treatment of nursing home bonds.
Ezyhealthcare Trust Management co-founder Yeo Wee Kiong said the group was targeting aged care properties in Australia and Japan because of the ageing demographics of both countries.
“We are initiating a ‘build-to-suit’ program to bring Asian capital to build new aged care properties in Australia,” Mr Yeo said.
“Australia and now Japan are just the start. They have ageing demographics, good existing stocks of healthcare properties, and are known to the Singapore REIT market.” He added that as populations in other Asian countries aged the group would look to invest across the region.
Mr Dwyer, also executive chairman of Oxley Capital Group, said the leaseback model had been successfully used by hotel operators. “A rapidly ageing community needs more nursing homes. It is a sector hungry for capital for properties and manpower,” Mr Dwyer said.
The group is working with PwC Real Estate Advisory on transactions in Australia.
“The market capitalisation of the SREIT sector in Singapore is over $US50 billion ($55.74bn), making it a source of competitive long-term capital,” PwC Real Estate Advisory director Tony Massaro said.
“Given our high capital needs in the Australian aged-care sector the next 10 years and beyond, this additional source of capital is certainly welcomed by the Australian market.”
SARAH DANCKERT THE AUSTRALIAN MARCH 06, 2014 12:00AM
SINGAPORE’S Ezyhealthcare Trust Management is in talks to buy “several” nursing homes and retirement villages to seed a new trust that will be listed on the Singapore exchange.
The group, co-founded by former Allco Singapore head Michael Dwyer, is looking to build up a portfolio of Australian healthcare properties worth up to $400 million ahead of its listing later this year.
Ezyhealthcare has teamed up with Japanese real estate fund manager Genkai Capital Management, which has taken a cornerstone investment in the Singapore company.
The venture is also looking to acquire healthcare properties in Japan.
The trust plans to lease the properties it buys back to the operators. It will also develop properties for lease as well. The majority of aged-care and retirement village operators own the properties underpinning their businesses in Australia to offset accounting regulations that require bonds and deferred management fees from residents as liabilities.
However, it is understood that a new raft of regulation governing the aged-care sector in Australia will alter the treatment of nursing home bonds.
Ezyhealthcare Trust Management co-founder Yeo Wee Kiong said the group was targeting aged care properties in Australia and Japan because of the ageing demographics of both countries.
“We are initiating a ‘build-to-suit’ program to bring Asian capital to build new aged care properties in Australia,” Mr Yeo said.
“Australia and now Japan are just the start. They have ageing demographics, good existing stocks of healthcare properties, and are known to the Singapore REIT market.” He added that as populations in other Asian countries aged the group would look to invest across the region.
Mr Dwyer, also executive chairman of Oxley Capital Group, said the leaseback model had been successfully used by hotel operators. “A rapidly ageing community needs more nursing homes. It is a sector hungry for capital for properties and manpower,” Mr Dwyer said.
The group is working with PwC Real Estate Advisory on transactions in Australia.
“The market capitalisation of the SREIT sector in Singapore is over $US50 billion ($55.74bn), making it a source of competitive long-term capital,” PwC Real Estate Advisory director Tony Massaro said.
“Given our high capital needs in the Australian aged-care sector the next 10 years and beyond, this additional source of capital is certainly welcomed by the Australian market.”