NOW Closed – Now closed to investment.
Spire’s second Fund has again partnered with US based Bridge Investment Group Partners, LLC, to provide Australian investors with the ability to access income and growth via an investment in the US Senior Housing and Medical Properties market.
Like Spire’s inaugural “ROC II” Fund, Spire USA ROC Senior Housing and Medical Properties Fund (AUD), will operate as a feeder fund to the underlying US investments sourced and managed by Spire’s US real estate partner, Bridge Investment Group Partners, LLC.
The Fund acts as an Australian feeder fund into the assets of ROC Seniors Housing and Medical Properties Fund, LP (“ROC Seniors”). ROC Seniors is a “buy, fix, sell” private equity real estate fund, investing in income producing and value-add US seniors housing and medical office properties.
The Fund owns a proportionate share of a current diversified portfolio of 50 separate real estate assets across the US, which have been acquired for approximately US$1.5 billion.
During ROC Senior’s 4 year Investment Period, the portfolio is expected to grow to US$2 billion in income generating assets.
Following the Investment Period, an exit strategy will be executed, which may include an IPO or trade sale of the portfolio.
The Fund will acquire assets that will benefit from what is being called the “Silver Tsunami’ – the US ageing population demographic, in which over 10,000 people per day are turning 65.
Each asset acquired will have a value-add strategy which will be implemented to increase the property’s cash flow and total return. In many cases this will involve increasing the number of Memory Care beds in a facility. Memory Care is a relatively new specialist sector and asset class within the US senior housing market, which provides specialist accommodation and care programs for residents afflicted with dementia; the leading cause of which is Alzheimer’s disease.
Currently in the US, there are over 5 million people living with Alzheimer’s and someone develops Alzheimer’s every 68 seconds. Yet there are only 35,000 Memory Care beds available. Accordingly, most Memory Care facilities are 100% occupied – with waiting lists.
Following the amalgamation of the portfolio during the Fund’s Investment Period, Bridge will asses the method and timing of the most profitable exit strategy for the portfolio. It is expected that this exit strategy will seek to exploit the pricing differences between the private markets and the public markets, via a portfolio or portfolio sales to publicly traded Real Estate Investment Trusts (REITs), or via an Initial Public Offering (IPO) of the portfolio as a new REIT. Alternatively individual assets may be sold when value has been maximised.
The Bridge Investment and Asset Management team behind the underlying ROC Seniors program, concluded a similar strategy in 2006 via the sale of a US$5 Billion portfolio of US Senior Housing properties to a publicly traded REIT, generating a portfolio Internal Rate of Return (IRR) of 33% (p.a.).
|Performance as at 31 May 2022||Net Returns*|
|3 years p.a.||-2.69%|
|5 years p.a.||2.10%|
|Since inception p.a.||2.78%|
*Performance returns are based on an investment made at the Fund’s first issuance of units in June 2014 at $1.00 per unit and includes Unit Price growth from commencement of Net Asset Value calculated after all fees and expenses following the completion of capital raising in December 2015. Unit Price and performance do not include the value of Foreign Income Tax Offsets (FITOs) which have been distributed in addition to cash. Individual investor performance will vary according to the Issue Price at which they were issued Units in the Fund, which in turn was based upon the AUD / USD exchange rate applicable in the month in which an investment was made. Past performance is not an indicator of future performance.
|Date||Unit Price||Net Monthly Return|
|31 May 2022||$1.2795||-1.01%|
|Period||Distribution Amount (cents per unit)||EX Price||Distribution Components|
|30 June 2021||Nil CPU cash; Nil CPU FITOs||$1.2949|
|30 June 2020||Nil CPU cash; 0.2682 CPU FITOs||$1.4126|
|30 June 2019||1.2781 CPU cash; 0.2757 CPU FITOs||$1.3697|
|30 June 2018||7.9420 CPU cash; 0.3675 CPU FITOs||$1.2302|
|30 June 2017||1.7531 CPU cash; 0.3165 CPU FITOs||$1.2012|
|30 June 2016||0.5171 CPU cash; 0.1151 CPU FITOs||$1.1678|