X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market click here.)

SYDNEY-GPT Group has entered the U.S. seniors housing market by acquiring a 95% interest in 19 assets in the New England region of the United States. The locally headquartered listed property company paid $438 million for the 1,982-unit portfolio and an additional $3.5 million for a 20% stake in the manager of the portfolio, Benchmark Assisted Living, which will acquire the remaining 5% of the real estate assets.

The acquisition, 100% funded with debt, was made on behalf of the GPT Wholesale Office Fund. The investment is expected to achieve an initial yield of 7.1% pre-costs (6.8% post costs). GPT chief executive Nic Lyons calls the acquisition a major milestone in the company’s efforts to develop a business model that will deliver growth of 4%- to 5% per annum over the medium to longer term.

“This acquisition not only gives us access to stable income flows through traditional property ownership but (also) access to management fee income and future opportunities in a sector (that) is forecast to achieve strong growth in line with an aging and affluent population,” he says.

The 1.46 million-sf portfolio is concentrated in Connecticut, where 12 of the properties are located, but also includes assets in Massachusetts and Rhode Island. Each property has between 56 units and 182 units and was constructed within the last eight years. Average occupancy is 92%.

Approximately 80% of the units in the portfolio are for assisted living and Alzheimer’s assisted living. The individual sales prices for each of the assets ranged from $11.3 million and $34 million each. GPT says the properties’ combined value is about $18 million more than the purchase price.

The New England region is considered one of the strongest markets for seniors housing. It is home to 26% of the U.S. population aged 75 plus and has high barriers to entry, with rents and occupancy higher than the national average.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt. Multifamily Spring 2022 (Formerly APTS)Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.