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Home Consortium (ASX:HMC) - MD and CEO, David Di Pilla
MD and CEO, David Di Pilla
Source: Home Consortium
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  • HealthCo REIT (HCW) had its much-anticipated float this morning, rising 15.59 per cent to $2.32 by the end of the day
  • The first listed healthcare property trust is the second-largest IPO of the year, behind the float of e-conveyancing platform Pexa
  • With a list price of $2 per unit, the Healthcare and Wellness REIT was underwritten for $650 million
  • The new REIT has 27 properties under its belt, with a value of $555 million, with the company pursuing an accretive acquisition and development agenda
  • Shares in HCW rose 15.59 per cent to $2.32 on its debut

The David Di Pilla-backed HealthCo REIT (HCW) had its much-anticipated float this morning, with the initial transaction at $2.20 before rising 14.5 per cent to $2.29 by the end of the day.

The first listed healthcare property trust is the second-largest IPO of the year, behind the float of e-conveyancing platform Pexa.

With a list price of $2 per unit, the Healthcare and Wellness REIT was underwritten for $650 million and will be paired with the $500 million unlisted HealthCo fund.

Investor interest pushed the planned raised amount from $500 million to $650 million.

HCW is a real estate investment trust with a mandate to invest in childcare, aged care, hospitals and other life sciences, healthcare and wellness properties.

The new REIT has 27 properties under its belt, with a value of $555 million, with the company pursuing an accretive acquisition and development agenda.

The portfolio enjoyed a weighted average lease expiry of 9.4 years and a 96 per cent occupancy.

The Portfolio is positioned on the eastern shore, with Queensland accounting for half of the properties. Over time, the REIT will aim for a regional split that roughly corresponds to each state’s national GDP contribution.

The tenant base of HealthCo REIT is diverse, with national tenants accounting for 71 per cent of income with large tenants such as GenesisCare and the government.

Following the float of Home Consortium in October 2019 and convenience mall landlord HomeCo Daily Needs REIT in November last year, HCW was the third IPO in three years for the company.

HealthCo REIT has obtained credit approval long-form term sheets for a new senior secured syndicated debt facility worth $400 million from two prominent Australian banks.

“HealthCo REIT will commence trading on the ASX with a strong balance sheet, net cash position and an undrawn bank credit facility, providing funding capacity for accretive acquisitions and developments,” HealthCo independent non-executive chair Joseph Carozzi said in the public disclosure statement.

The REIT will be externally managed by Home Consortium, with Home Consortium Developments Limited (HCDL) will maintain an investment in a 20 per cent interest, subject to a 12-month voluntary escrow arrangement.

Shares in HCW rose 15.59 per cent to $2.32 on its debut.

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