Chris Smith

Healthcare property may continue to provide strong returns and defensive characteristics for investors, but finding intrinsic value in the asset class has become more challenging, according to Chris Smith, Head of Healthcare Property at Australian Unity.

Mr Smith was speaking at the Property Funds Association 2019 Conference in Hobart this week. He said healthcare is proven as a strong alternative property asset class for investors including mums and dads superannuation funds and family offices. “Healthcare property provides exposure to favourable demographic drivers including a growing population and an increasing median age in the population.

“Australia continues to depend on a cohesive public and private health system, which provides many opportunities for investment, including hospitals, medical centres, aged care assets and ancillary assets such as pathology labs.

“Demand for all these services are set to increase as Australia’s population grows toward the 43 million mark by 2066 (ABS data).”

Healthcare property had shown strong defensive characteristics for investors, with healthcare continuing to provide positive returns during the GFC. Mr Smith said post-GFC, the ‘Healthcare Property Index’ has regularly outperformed the ‘All Property Index’.

But he said healthcare property was currently in a challenging part of the cycle where it had become harder to find quality assets with good intrinsic value relative to price. “Some recent transactions suggest a blurring of lines between A, B and C-grade properties, which is a concern.

“We are seeing tighter capitalisation rates with newer participants entering the sector and paying well above current market valuations for assets like hospitals and medical centres.”

He said Australian Unity has the luxury of size and can be more selective on deals. “We are happy to wait until the right deals present themselves. We are currently finding some better value in greenfield development, for example our investment in a new private hospital in Kanwal, NSW.”

Australian Unity’s Healthcare Property Trust has delivered 11.81% per annum to investors since inception in February 2002. The Trust has delivered 8.12% for the last year, and 13.76% per annum over three years (all returns to 31 December 2018).

The Property Funds Association 2019 Conference is themed Critical Change: Crisis, Challenge or Catalyst for Property Investment and concludes on 7 May 2019.

The post Healthcare property delivering strongly for investors but finding value more challenging: PFA Conference appeared first on AdviserVoice.

The FPA Awards recognise the achievements of outstanding financial planners, paraplanners, students and practices, and celebrate the individuals and businesses who go above and beyond for their local community.

FPA CEO Dante De Gori CFP® said finalists had been chosen because they have made a positive difference in the lives of clients, and delivered the highest professional and ethical standards outlined in the FPA Code of Professional Practice.

“Those shortlisted in the financial planner categories have shown exceptional commitment to professional standards and they’ve put their client’s best interest first at all times. I am extremely proud of the work being done by all the finalists and look forward to announcing the winners at Congress in November.”

Mr De Gori also highlighted the Community Service Award supported by Future2 Foundation that honours outstanding pro bono and volunteer work by CFP® professionals and Financial Planner AFP® members.

“With support from the financial planning community, we’re now on track to raise $1 million in grants for Future2 since fundraising started in 2007. As the philanthropic arm of the FPA, Future2 gives members the opportunity to raise funds for grassroots programs that transform the lives of young people who are experiencing social, financial or physical hardship.

“I’m especially proud of our members who contribute to Future2 through donations, getting involved in fundraising activities and by nominating organisations for the annual grant program.”

Depending on the category, prizes include $5,000 for either professional development or a charity of choice, support for media opportunities, and complimentary registration to the FPA Professionals Congress.

Award winners will be announced at the FPA 2018 Professionals Congress, along with the winner of the bi-annual Gwen Fletcher Memorial Award. For more information about the FPA Professionals Congress visit www.fpacongress.com.au.

The shortlist for each award is as follows:

FPA CERTIFIED FINANCIAL PLANNER® Professional of the Year Award

• Michael Carmody CFP® – Viva Wealth (WA)
• James McFall CFP® – Yield Financial Planning (VIC)
• Chris Smith CFP® – VISIS Private Wealth (QLD)

FPA Financial Planner AFP® of the Year Award

• Felicity Cooper AFP® – Cooper Wealth Management (QLD)
• James O’Reilly AFP®– Northeast Wealth (VIC)
• Sandra Slattery AFP® – Commonwealth Financial Planning (NSW)

FPA Paraplanner of the Year Award

• Pierce Hanlen – Hewison and Associates (VIC)
• Kearsten James CFP® – Sterling Private Wealth (QLD)
• Emma Zwaan AFP® – Capital Partners (WA)

Community Service award supported by Future2 Foundation

• Amanda Cassar AFP®– Wealth Planning Partners (QLD)
• Wayne Fenton AFP® – Elders Financial Planning (TAS)
• Zacary Leeson CFP® – HPH Solutions (WA)

FPA Professional Practice of the Year Award

• Eureka Whittaker Macnaught – Sydney (NSW)
• VISIS Private Wealth – Brisbane (QLD)
• Wotherspoon Wealth – Adelaide (SA)

FPA University Student of the Year Award

• Mary Hadgis – University of South Australia (SA)
• Mitchell Harrison – Deakin University (VIC)
• Paul Travis – Griffith University (QLD)

The post Awards finalists revealed ahead of FPA Professionals Congress appeared first on AdviserVoice.

Chris Smith

The healthcare property sector continues to perform very strongly, with Australian Unity’s Healthcare Property Trust (HPT) delivering a total return of 20.01 per cent, (7.17 per cent income and 12.84 per cent growth) for the financial year ending 30 June 2016.

Valuations across the total portfolio were up nine per cent from the prior year and gross asset value now stands at more than $1.1 billion.

Chris Smith, head of healthcare property at Australian Unity Real Estate Investment, said the sector continues to demonstrate consistent performance, delivering solid income returns and good capital growth for investors.

“Recently released data from the IPD Australia Healthcare Investment Digest highlights the continued strong performance of the healthcare property sector driven by increased demand for assets, record low interest rates and broader investor appetite for the specialist assets.”

According to IPD, the sector’s total return for the year ended 30 June 2016 was 23.2 per cent, up from 18.5 per cent in the previous year.

IPD also reported that for the 12 months to 30 June 2016 the average capitalisation rate across the healthcare sector was 7.3 per cent, down from 8.4 per cent from the prior year*.

Mr Smith said Australian Unity maintain a positive and optimistic view of the Australian healthcare property sector.

“Over the coming year, we expect that strong investment demand will continue to provide support to valuations across all property sectors.

“Looking ahead, HPT is well positioned for growth through the development of new and existing assets, together with potential acquisitions.

“With occupancy of 97.64 per cent (by area) and Weighted Average Lease Expiry at 10.58 years (by income at 30 June 2016), our expectation is that HPT will continue to provide investors with a solid and sustainable level of distribution income over the medium term.

Mr Smith said the recent IPD data provides strong evidence that there is still room for healthcare assets to grow despite its double-digit returns over the last 12 months.

“Healthcare assets are becoming more widely sought after by investors, with the sector providing very steady distribution returns over the last 15 years – even throughout the GFC.

“In addition, our view is that major private healthcare operators are well positioned to continue steadily growing and expanding their businesses.

“We have very long term leases in place, upwards of 20 years in some instances, with a range of quality tenants, including some of Australia’s most successful companies and this makes an investment in healthcare property distinctly different to other property sectors where there isn’t that degree of tenant stability.

“Assets are still more thinly traded than other sectors, but we are seeing an increased level of brownfield and greenfield development to keep up with increased demand for healthcare services, which will continue to drive strong returns for investors in the sector,” Mr Smith said.

* MSCI IPD Australia Healthcare Investment Digest – Trends Quarter ending June 2016

The post Australian Unity Healthcare Property Trust delivers total return over 20 per cent appeared first on AdviserVoice.

Chris Smith

Australian Unity’s Healthcare Property Trust (HPT) has reached $1 billion in funds under management, making it the largest healthcare property fund in Australia.

The fund was launched in 1999 to capitalise on growing demand for healthcare services, driven by Australia’s ageing population. It owns a portfolio of 37 health-care related properties across Australia including hospitals, medical clinics, day surgeries, consulting rooms and specialist centres such as radiology and pathology.

Chris Smith, head of healthcare property at Australian Unity Real Estate Investment, said that the fund’s long-term strategy to build and expand its existing assets to deliver health services demanded by Australia’s ageing population is a story that continues to resonate with investors

“The fund has a very stable and supportive investor base who have benefited from strong returns over the past sixteen years.

“HPT has proven its ability to generate income in every market condition, over boom and bust cycles, including actively managing its exposure to interest rates when they were much higher.

“Recent valuations conducted in April and May 2016 of the Trust’s properties saw an uplift of close to $40 million, further evidence of the quality of the portfolio and the growing demand for healthcare infrastructure.

“Australian Unity has and continues to be an active long term investor in building and improving Australia’s social infrastructure.

“As the demand for healthcare services increases in line with Australia’s rapidly ageing population we have prioritised expanding, improving and upgrading the HPT’s existing hospitals and medical centres to meet this demand.

“HPT continues to work on a number of large-scale and long-term health infrastructure projects that provide mutually beneficial outcomes for patients, hospital operators and tenants, the wider community and investors.

“As Australia continues to grapple with social infrastructure challenges stemming from our ageing demographic and the rise in chronic disease HPT’s approach is to continue to help more and more Australians access healthcare services of the highest quality.

“For example, the HPT will conclude two major hospital projects in September this year.

“The first, a $50 million multi-phase project at Peninsula Private Hospital in Langwarrin, Victoria commenced in December 2014 and includes the construction of a new emergency department, 71 additional beds, a state of the art hybrid operating theatre and additional parking.

“The second major project is the $30 million development of Robina Private Hospital, in Robina, Queensland including the construction of 90 new hospital beds.”

Mr Smith said that the increasing cost of healthcare is one that future governments will find hard to fund.

“Outsourcing the provision of healthcare infrastructure and services to quality, trusted companies is the most obvious solution for governments.

“The private health sector now plays an increasingly important role in the provision of services relied on by millions of Australians that were traditionally provided by the public system. The private sector treats two in five of all patients in Australia, provides one out of every three beds, conducts two in three elective surgeries, and manages 45 percent of chemotherapy treatments, more than 70 per cent of eye surgeries and 47.5 percent of heart surgeries.[1]

“This provides a clear future growth path for healthcare property as an asset class,” he said.

The wholesale version of the HPT has returned investors 11.04 per cent over the last ten years and its one year return to 31 May 2016 was 20.45 per cent. In April this year, the fund temporarily suspended applications given the increasingly strong demand from investors and will re-open the fund to new applications as it progresses its development program.

———

[1] AIHW (Australian Institute of Health and Welfare) 2013. Australian Hospital Statistics 2011–12. Health services series 50. Cat. no. HSE 134. Canberra: AIHW. AIHW 2014. Australian Hospital Statistics 2012–13. Health services series. Cat. no. HSE 145. Canberra: AIHW.

The post Healthcare Property Trust hits $1 billion in funds under management appeared first on AdviserVoice.

Chris Smith

The Australian Unity Healthcare Property Trust (HPT) has acquired the Brisbane Waters Private Hospital on the New South Wales Central Coast for $16.175 million.

The property is forecast to deliver a yield of 9.27 percent in its first year with the potential to add additional value through brownfield development, says Chris Smith, Australian Unity’s head of healthcare and retirement property funds.

HPT is an unlisted property trust that invests in healthcare-related property assets with a primary focus on delivering regular income, plus the opportunity for long-term capital growth.

The property purchase will be funded by capacity within the debt facility of HPT, which currently has a gearing level of 21 percent, and the property will have an initial 22.5 year lease term to Healthe Care.

The property at 21 Vidler Avenue Woy Woy is a two-level, 78-bed general hospital complex. It was originally constructed in 1978 and comprises a number of ancillary buildings and site improvements. HPT will refurbish and extend the hospital during the early years of ownership.

“The purchase of this property is another quality addition to HPT’s diverse property portfolio, and increases its allocation to New South Wales property to 37 percent,” Mr Smith says.

“Woy Woy is located at the southern end of NSW’s Central Coast region, 80 kilometres north of Sydney’s CBD, and is a popular retirement destination with a growing population.

“The Woy Woy area, including Ettalong, Umina, Ocean Beach and Koolewong, is also an important part of the Sydney commuter belt, with rail journey times of just over an hour to reach Sydney’s CBD and easy access via the F3 Motorway from Sydney to Newcastle.

“HPT will continue to look to invest in quality healthcare property that meets its stated aims of providing income and capital growth.

“The HPT now has significant capacity to acquire property that meets its strict acquisition criteria and is seeking opportunities to acquire new assets as well as looking at further developing existing assets within the trust. Both the pace and frequency of these developments have picked up substantially over the past few years, and we expect more expansions in the future will play an increasingly important role in the delivery of community healthcare services,” Mr Smith says.

In line with its active management strategy the Australian Unity Real Estate Investment team has recently re-financed HPT’s debt facility in two tranches, the longest of which expires in 2019. This has resulted in the cost of debt decreasing by 70 basis points and subject to HPT’s total level of gearing the reduction is expected to be accretive to the earnings and distribution yield of HPT.

Over the past 15 years HPT has grown to become one of the largest and highest-rated unlisted property funds in Australia. Today, it has a diversified tenant base and holds a quality direct portfolio of 25 healthcare properties across Australia, valued at over $550 million (as at 30 June 2014).

The Healthcare Property Trust – Wholesale Units returned 9.03 percent over one year, 7.71 percent per year over three years, 6.29 percent per year over five years and 11.36 percent per year since its inception on 16 May 2000[1].

HPT was named the winner of the 2013 Australian Property Institute NSW Excellence in Property Awards in the Property Trust Industry category, and the Australian Unity Real Estate Investment team was named the Professional Planner / Zenith Investment Partners Direct Property Fund Manager of the Year for 2013.

The post Healthcare property continues to show value appeared first on AdviserVoice.

Greater demand for private medical for health facilities will drive up property values.

Putting aside the fight brewing between the states and the Commonwealth over public healthcare spending, there could be a silver lining for investors, says Chris Smith, head of healthcare and retirement property funds at Australian Unity Investments.

“As it becomes more difficult, and more expensive, for governments to fund growing healthcare needs, an increasing number of Australians will turn to the private sector to meet their health and medical needs.

“As a result, there will be even greater demand for private medical centres, private hospitals and other allied health facilities, which will drive up their property value.

“Investors in healthcare property may reap the benefit of this in terms of both capital value and income yield,” Mr Smith said.

He pointed to three main areas that are driving demand for healthcare services –population growth; the increasing proportion of the population that will live beyond 65; and the dramatic rise in lifestyle diseases, which are typically the result of tobacco use, poor diet and lack of exercise.

“There will undoubtedly be ongoing and growing demand for healthcare and medical services that Federal and state governments will increasingly face difficulties in funding.

“According to the 2014-15 Budget papers, 16.1 percent of Federal government spending is provided for health. With this forecast to increase considerably over the forward estimates, it is increasingly likely that governments will move to limit services and expenses provided from the public purse.

“The outcome is that we expect the usage of private hospitals and private medical facilities will continue to rise, and the increased demand will ultimately require more space to expanding existing facilities and build new ones.

“At Australian Unity Real Estate Investment, we are continually seeing opportunities to further invest in developing our existing healthcare property assets. Both the pace and frequency of these developments have picked up substantially over the past few years, and we expect more expansions in the future will play an increasingly important role in the delivery of community healthcare services.”

Mr Smith said that for investors, the opportunities are significant.

“We continue to see a lot of interest in healthcare investments by both on and offshore REITs and institutional funds, which is a good indicator of the strong outlook for the sector.

“With retirees looking for strong and consistent income streams as higher term deposit rates roll off, healthcare property is increasingly worthy of consideration in a well-diversified investment portfolio,” Mr Smith said.

The post Silver lining for healthcare property investors appeared first on AdviserVoice.

The healthcare property sector has been less volatile than other commercial property sectors.

The benefits of investing in commercial property are often overlooked by SMSF trustees but now could be a good time to consider this investment option, says Ryan Banting, head of portfolio management, Australian Unity Real Estate Investment.

Many investors automatically think ‘residential’ when considering property as an asset class but, with residential property markets at risk of overheating, now may not be the right time to invest in this area, Mr Banting says.

“Trustees who wish to include property exposure in their investment portfolios would do well to consider commercial property.

“Investors may believe that commercial property isn’t suitable for a SMSF because of the size of investment required, the possible lack of liquidity and the difficulties in managing a commercial property, as opposed to a residential property,” Mr Banting says.

However, these concerns can be overcome by taking advantage of pooled investment vehicles such as listed and unlisted property trusts.

“These trusts may be an option for smaller investors looking to diversify their SMSF portfolio into the commercial property space. Both are managed by professional fund managers who invest and manage a portfolio of properties using the pooled capital.

“Other benefits of investing in commercial property through a managed fund include diversity, regular valuations, smaller capital requirement for buy-in, potentially greater liquidity through regular withdrawal facilities, and a stable income from a diversified tenancy base,” Mr Banting says.

Unlisted non-residential properties in Australia have in the past consistently achieved investment yields of around seven percent over the past two years, providing stable and regular returns for investors; at a time when other asset classes have faced headwinds such as falling interest rates and weakness in the sharemarket.

“Unlike listed property funds, unlisted funds are not subject to the share market volatility that listed funds have experienced in recent years; exhibiting performance in line with the underlining investment properties.” says Mr Banting.

Chris Smith, head of healthcare and retirement property at Australian Unity Investments agrees and says the healthcare property sector is a great example of this.

“The healthcare property sector has been less volatile than other commercial property sectors over the past few years, and has outperformed all property on a one, three and five year basis, driven primarily by strong income returns.*

“Healthcare properties are different because they are relatively scarce, operate in a regulated industry and are typically leased to large, stable and wellresourced operators,”

“The ageing Australian population and increasing need for healthcare services ensures high occupancy levels and contributes to higher income yields.”

*Source: IPD index, December 2013

The post Don’t overlook the benefits of investing in commercial property appeared first on AdviserVoice.

The Australian Unity Healthcare acquires a medical technology facility in St Leonards, NSW.

The Australian Unity Healthcare Property Trust (HPT) will shoot through the $500 million in funds under management mark, with the acquisition of a medical technology facility at 8 Herbert Street, St Leonards, New South Wales for $38.5 million, says Chris Smith, Australian Unity’s head of healthcare and retirement property funds.

HPT is an unlisted property trust that invests in healthcare related property assets with a primary focus on delivering regular income, plus the opportunity for long-term capital growth.

“The purchase of this property will enhance the geographic, property type and tenant income diversification of HPT and will be funded by capacity within the existing debt facility. The property represents an initial yield of 9.8 per cent and as such is accretive to earnings,” Mr Smith says.

“HPT has an outstanding history of delivering stable income and capital growth to investors. We believe this property will contribute to the continued success of the trust. Since inception HPT has returned 11.44 per cent and its 10 year return stands at 11.56 per cent. Over three years it has returned 7.28 per cent and the one year return stands at 9.48 per cent,” Mr Smith says.

The Herbert Street property is a modern three storey medical technology facility, with a net lettable area of 10,556 m2 and basement security car park for 156 vehicles. It is located only seven kilometres from Sydney’s CBD and walking distance from the main hospital building of the Royal North Shore Hospital (RNSH) precinct.

The anchor tenant of the property is leading global prosthetics and medical equipment manufacturer and distributor, Stryker Australia. Other tenants include RCPA Quality Assurance Programs, an entity closely associated with the Royal College of Pathologists of Australia.

This is the second acquisition for HPT in St Leonards since the purchase of 176 Pacific Highway in 2008. This property is home to the North Shore Specialist Day Hospital and is the company headquarters of Virtus Health.

“Healthcare property continues to be attractive and highly sought after as an asset class. HPT has seenconsiderable investor support over the past year, with inflows comparable to pre-GFC levels,” Mr Smith says.

“The long-term outlook for healthcare is extremely positive. Australia’s ageing population, and the associated health and medical implications of this, mean demand for private healthcare and related services will continue to grow.

“There is already evidence of expanding demand in the sector and having built significant capacity for further acquisitions, HPT stands ready to capitalise on this demand for the benefit of its investors.

“Further to the St Leonards acquisition we are working on a number of other property acquisitions and brownfield developments that will result in further growth and accretive earnings for HPT by 30 June 2014.

“The acquisition focus is on hospitals, medical centres and other health related type assets in New South Wales and South-East Queensland valued at over $10 million,” Mr Smith says.

Australian Unity Investments (AUI) was named the winner of the 2013 Australian Property Institute NSW Excellence in Property Awards in the Property Trust Industry category, and it also was named theProfessional Planner / Zenith Investment Partners Direct Property Fund Manager of the Year for 2013.

Over the past 13 years, HPT has grown to become one of the largest and highest-rated unlisted property funds in Australia. Today, the Trust has a diversified tenant base and following the completion of this acquisition, will hold a quality direct portfolio of 25 healthcare properties across Australia, which together with its other assets, will be valued at over $520 million.

AUI manages a range of diversified property funds, covering healthcare, retail, industrial, commercial and office property and has over $1.7 billion in property assets under management (as at 31 October 2013).

The post Acquisition pushes HPT FUM over $500 million appeared first on AdviserVoice.

Good yields and stable values in the Australian property market.

The Australian property market is currently offering investors attractive yields and stable values, with the spread between property and Australian Government 10 year bonds at 310-550 basis points for prime assets, according to Australian Unity Investments (AUI).

“Overall, there is a case to consider investing in property now, given the widening yield differential and the continuing low interest rate environment,” says Ryan Banting, head of portfolio management at AUI.

“Property capital values have stabilised and yields are now back to longer-term averages.

“In this environment, we believe property represents a less volatile total return investment profile than other risk asset classes,” he says.

AUI’s latest commercial property market outlook found some property sectors performing better than others, with strong domestic and offshore investment demand for quality office property, and healthcare property delivering the highest returns.

“Low interest rates make office property investment compelling, while currency depreciation is encouraging foreign investors,” Mr Banting says.

“Many large foreign pension funds are increasing their allocation to direct property, with Australian office markets comparing favourably to foreign markets due to our higher yield, lower vacancy rates, greater transparency, and more recently our falling currency.”

The returns and outlook make the property market an attractive option for Australian investors as well.

“Subdued tenant demand is offset by low supply under construction, and highly occupied portfolios are continuing to perform well as most tenants are seeking to renew their existing leases at lease expiry,” Mr Banting says.

“Office property returns continue to trend around the long term average of 10 per cent, comprised of 7.5 to 8 per cent income and 2 to 2.5 per cent capital growth.”

AUI says healthcare continued to deliver the highest total returns of the property sector of between 8.6 per cent and 12.3 per cent (after fees) over one, three and five year periods to June 2013*. It also delivered the highest risk-adjusted returns of the property sector, over the seven-year period to 30 June 2013*.

Healthcare property also brings portfolio diversification benefits.

“Australia’s ageing population and greater incidence of disability underpin demand for healthcare services, and there is a strong correlation between age, disability and the requirement for healthcare services,” says Chris Smith, head of healthcare and retirement property at AUI.

“Non-cyclical demand for core medical services has protected the sector from external market shocks. Hospitals display a consistent performance profile and typically have long leases of 15-20 years. This insulates the income stream and provides capital value stability.

“The healthcare sector also has the lowest correlation with other property sectors, making it a desirable addition to a diversified property portfolio,” he says

In the retail space, AUI has found that property returns are generally softer due to weak growth in retail consumer sales.

Total income returns from industrial property have been consistent at 8.5 per cent (after fees) in the 12 months to 30 June 2012 and 30 June 2013*. AUI believes the medium term outlook is consistent with this level of return given subdued demand and little change in yields.

The post AUI property outlook: Compelling case for commercial property; healthcare investments outperform appeared first on AdviserVoice.

More to property than residential

Investors, particularly self-managed super fund trustees, need to understand there is more to property than the residential sector, says Chris Smith, head of healthcare and retirement property at Australian Unity Investments.

“Generally speaking Australians are over-exposed to residential property, especially those that own an investment property as well as their home.
 
“Such investors are vulnerable in that they are overweight to residential property at the expense of other property sectors which are currently performing much better.”
 
Mr Smith said now is a good time to be investing in a broad-based property portfolio through careful selection of property funds.
 
“The current move from cash to equities, brought about by falling interest rates, shouldn’t bypass other asset classes that provide growth and income.
 
“A better re-balancing would be to include a selection of property sectors as well as equities for both growth and defensive reasons.”
 
For example, healthcare property has the sort of attributes long-term investors should find appealing, Mr Smith said
 
“As a sector, healthcare is currently producing excellent returns – 11 per cent annualised total return for the year ending December 2012 according to the latest IPD/PCA index -outperforming all other property sectors.
 
“Indeed, the healthcare sector has outperformed all other property on a one, three and five year basis, driven primarily by strong returns.
 
“The outlook for occupancy and new builds is also very strong, with demand for healthcare services expected to continue to increase from an increasingly older population and longer life expectancy.”
 
Mr Smith said that in recent years there has been a lot of attention given to the inability of the health system to cope with demand and successive governments’ under-investment in hospital infrastructure.
 
“As a result, there has been a recent burst of activity to build or rebuild medical infrastructure which is creating an additional need for support healthcare services such as consulting rooms and other specialist centres. Most of these operate at capacity as soon as they are built.
 
“Healthcare is a basic need and the demand must increase with an ageing and growing population.
 
“At one time, people didn’t survive a heart attack, or only had one hip replacement during their lifetime.  Now they survive a heart attack or have multiple hip replacements, and may need ongoing monitoring, post-operative rehabilitation, care and treatment for many years.
 
“Investment in the facilities that provide the increasing number of health services needed makes healthcare property a growth area, as well as a good defensive investment, and should have a place in any diversified property portfolio,” Mr Smith said.

The post More to property than residential appeared first on AdviserVoice.