Tax-efficient real estate investment |

For as little as $10,000, investors can enter the sought-after sector of healthcare real estate.

Centuria NZ has a long history of helping thousands of New Zealanders invest in quality commercial and industrial properties. They are part of the ASX-200-listed Centuria Capital group with approximately A$20 billion in Trans-Tasman assets under management* and have both a strong track record and a conservative approach.

Their latest opportunity offers anyone in New Zealand a tax-efficient way to invest in the sought-after sector of healthcare real estate with as little as $10,000.

Centuria NZ Healthcare Property Fund offers an initial forecast cash distribution of 5% per annum free of New Zealand income tax payable for the financial periods ending 31 March 2023 and 31 March 2024, primarily due to capital cost allowances .**

This means that investors will receive the full 5% cash distribution***, regardless of their personal tax situation.

Edith Cavell Lifecare, one of the assets the fund is acquiring, all leased to one of New Zealand's leading and largest aged care operators, Heritage Lifecare.


Edith Cavell Lifecare, one of the assets the fund is acquiring, all leased to one of New Zealand’s leading and largest aged care operators, Heritage Lifecare.

Mark Francis, CEO of Centuria NZ, says that if the planned initial cash distribution of 5% per annum for the financial periods above were fully taxable (due to the absence of depreciation deductions and other adjustments) and did not have PIE status, the fund would have to deliver an equivalent pre-tax distribution of 7.46% for an investor on a marginal tax rate of 33% – or an equivalent of 8.20% for 39% to provide the same expected after-tax distribution of 5%.

“This attractive distribution rate, paid monthly to investors, combined with the fund’s strong fundamentals and potential for capital growth, makes it an attractive offering.”

“The fund will initially acquire a portfolio of 23 aged care facilities located across New Zealand, all with new 30-year triple net leases to one of New Zealand’s leading and largest care-focused operators. aged care, Heritage Lifecare.”

Francis says the initial term of 30 years is very favorable by New Zealand standards. Combined with a tenant of this caliber in an area with favorable macro trends and inflation-linked growth, he says it provides a stable long-term income stream.

“Investments of this caliber with an attractive lease clause, 30-year ‘triple net lease’, geographically diverse portfolio and inflation-linked growth are hard to find in today’s market,” Francis said.

Mike Houlker, head of the investment products division of Bayleys, which markets the fund, says a key feature is that 30-year leases, with renewal rights totaling another 60 years to 2112, are structured in “triple net”. .

“A triple net lease means that all costs of capital expenditure, repairs, maintenance and other works, whether structural or otherwise, are outside the responsibility of Centuria NZ Healthcare.”

“Each lease states that the tenant has the same responsibilities in relation to the premises as if the tenant were the ‘landlord’. This is widely considered to be the most landlord-friendly form of lease.”

Stillwater Lifecare, one of 23 senior care assets the fund is acquiring in the sought-after healthcare real estate sector.

Grant Stirling

Stillwater Lifecare, one of 23 senior care assets the fund is acquiring in the sought-after healthcare real estate sector.

Bayleys head of investment products Samara Phillips says another important feature of leases is annual rent reviews which reflect movements in the consumer price index (CPI), subject to a minimum increase of 1% per year and a ceiling of 4% per year.

“This will lead to built-in rent growth, increasing rental income each year for the next 30 years and providing some degree of offset against inflationary pressures,” she said.

Phillips says another key aspect of investing is the sector, which is seeing growing demand with New Zealand’s rapidly aging population. It also benefits from high levels of recurrent public funding – estimated at 53% directly from the government and around a further 24% funded indirectly through residents’ pensions.

Chris Farhi, chief information and data officer at Bayleys, says healthcare real estate benefits from long-term demographics and the fact that healthcare spending is often mandatory. Healthcare real estate therefore has sought-after acyclical and defensive characteristics.

“These factors contribute to lowering the risk profile of the healthcare real estate sector and making properties associated with the healthcare sector desirable additions to portfolios,” he said. “The outlook for the medical and healthcare real estate sector in New Zealand, including the aged care sector, continues to remain attractive.”

For more information, including a copy of the Product Disclosure Statement for Centuria NZ Healthcare as well as a video and presentation details, visit

* Assets under management as of December 31, 2021. Includes contracted assets to be settled, cash and other assets.

** Assuming (i) a tax depreciation benefit based on land valuations and purchase price allocation reports received by Centuria NZ Healthcare for the initial properties, (ii) that Centuria NZ Healthcare does not sell or n acquires properties during the financial periods ending March 31, 2023 and March 31, 2024 and (iii) no change in relevant tax laws. Taxable depreciation recapture income may arise on any future sale of a property, which may result in tax being payable at that time.

*** Projected cash distribution of 5% per annum before tax and after tax for the financial periods ending March 31, 2023 and March 31, 2024. Details on how the projected cash distribution is calculated and the associated risks to this investment can be found in the Product Disclosure Statement. The expected after-tax distributions only reflect New Zealand income tax. Pre-tax and after-tax cash distributions are not guaranteed and may change in the future.

Centuria NZ Healthcare Property Fund Limited is the issuer of the shares to be issued under the offering to which this advertisement relates. A product disclosure statement for the offer, which sets out the terms and conditions of the offer, is available and can be obtained by contacting the Bayleys estate agents listed in this advertisement. Nothing in this advertisement constitutes an invitation to subscribe or an offer of shares, securities or financial products to any person, in any country, in which it would be illegal to do so. Terms used in this advertisement have the same meaning as defined in the product disclosure statement, unless the context otherwise requires. Before deciding to invest, you should obtain independent financial advice that takes into account your personal financial goals and circumstances. Bayleys Real Estate Limited cannot provide such independent financial advice to you. Important information about the financial advisory service provided by Bayleys Real Estate Limited can be found at