NOW Closed – Now closed to investment.

Fund facts

Asset Class
Global Real Estate
APIR
ETL1507AU
ASRN
616 633 357
PDS Date
February 17, 2017
Suggested Investment Period
5-7 years
Distribution
Annual as at 30 June
Redemptions
N/A - The Fund is closed ended
Applications
Closed to new investment
Wrap Access
BT Wrap, Asgard and Colonial First State. Others please contact Spire Capital for further information.
Investment Partner

Spire has again partnered with US based Bridge Investment Group 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.

Spire USA ROC Senior Housing and Medical Properties Fund II, will operate as a feeder fund to the underlying US investments sourced and managed by Spire’s US real estate partner, Bridge Investment Group  LLC.

The Fund acts as an Australian feeder fund into the assets of Bridge Seniors Housing and Medical Properties Fund II, LP (“Bridge Seniors II”). Bridge Seniors II 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 intends to provide investors with meaningful and consistent Current Income paid on an annual basis and the potential for strong capital appreciation and attractive risk-adjusted returns by investing in select Seniors Housing properties located throughout the US. The Fund will focus on independent living (“IL”), assisted living (“AL”) and memory care (“MC”) facilities, although the portfolio may also include skilled nursing facilities (“SNF”) and continuing care retirement communities (“CCRC”). The Fund also intends to opportunistically invest in select medical office and other healthcare-related properties which represent exceptional value.

Following the Investment Period, an exit strategy will be executed, which may include an IPO or trade sale of the portfolio.

Bridge Seniors II 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 the value has been maximised.

The Bridge team behind the underlying Bridge Seniors II 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.).

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned February 2017) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and athttp://www.zenithpartners.com.au/RegulatoryGuidelines

Ordinary Units

Performance as at 31 August 2019 Net Returns*
1 month3.03%
3 months3.47%
6 months4.49%
1 year6.27%
Since inception p.a.2.41%
Since inception6.11%

*Performance returns are based on an investment made at the Fund’s first issuance of units on 3rd March 2017 at $1.3220 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 November 2017. 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 Application Price at which they were issued Units in the Fund, which in turn was based upon the AUD / USD exchange rate applicable on the day that an investment is accepted. Past performance is not an indicator of future performance.

Date Unit Price Net Monthly Return
31 August 2019$1.3923 3.03%

PDS/IM & Forms

Product Disclosure Statement
pdf
Interactive Application Form
pdf
Off Market Transfer Form
pdf
Change of Contact Details Form
pdf
Change of Advisor Form
pdf
Change for Bank Details Form
pdf
TFN/ABN Notification Form
pdf

Research

Fund Flyer & Fact Sheet
pdf
Zenith Research Report
pdf
Webinar Presentation
pdf

Monthly Fact Sheets

PeriodDistribution Amount (cents per unit)EX PriceDistribution Component
30 June 2019 0.3098 CPU cash; 0.1571 CPU FITOs $1.3268
30 June 2018 0.6764 CPU cash $1.2961