HealthCo’s Health and Wellness REIT (HCW) has announced a series of acquisitions increasing its portfolio value 20 per cent to $668 million, or $850m when construction of some of the assets are complete.
Two of the properties – a half stake in Southport’s $80m Proxima building and an 82pc share of a $29.2m Camden (Sydney) block making way for The George hospital – are coming from its parent, HomeCo (HMC).
Following settlement, the fund will hold all of the Queensland asset and 82pc of the New South Wales one.
The fund is additionally picking up 13 childcare centres for a total of $108m, reflecting a core capitalisation rate of five per cent.
Twelve of these properties – all up, worth $98m and forming just over half of a portfolio listed in July by Allaf Property – are due for completion between now and next May.
The other childcare investment, at Sydney’s Greystanes, settled last month.
The total outlay of the property deals is nearly $200m.
HCW floated in September – its $2 offer price today sitting at $2.22 (story continues below).
HMC changes tack
HMC had initially intended for its stakes in the Southport office and Camden hospital to sit in a proposed unlisted fund.
Explaining the decision to instead sell to HCW, the parent’s chief executive officer and managing director David Di Pilla said it was influenced by a number of factors including the depth and quality of investor demand for the HCW initial public offering, and the potential impact to HCW’s growth trajectory during the initial two year deployment phase of the proposed unlisted fund.
“The investor response to the HCW IPO enabled us to raise $650m compared to our original target of $500m and more importantly demonstrated the potential to execute our growth objectives through HCW,” he added.
Also today, the fund announced it secured the federal government to a short term lease at a St Mary’s property longer term intended to be repurposed as a health hub and childcare centre.
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