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Render of HealthCo site in Ballarat, Victoria. Source: HomeCo
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  • HomeCo (HMC) acquires eight private oncology assets with triple-net leases from GenesisCare for $110.3 million
  • The company has also established a joint venture with operator Acurio Health Group to acquire and develop a five-hectare private hospital in Camden
  • ASX-listed HealthCo REIT and Unlisted Institutional Fund are on-track for establishment by calendar year-end, the company said
  • HomeCo announced that Chris Roberts, former CEO of Cochlear, has joined the proposed board of ASX-listed HealthCo
  • Shares in Home Consortium are up 0.19 per cent, trading at $5.37 per share at 12:00 pm AEST

HomeCo (HMC) has purchased eight private oncology assets from GenesisCare for $110.3 million as it increases its HealthCo footprint in the lead up to an initial public offering.

The nationwide property portfolio from GenesisCare, a worldwide cancer care provider, was purchased in a sale-and-leaseback transaction.

A $110.3 million purchase price reflects a weighted average passing yield of about 4.5 per cent and enjoys triple-net leases and a weighted average lease expiry of 10.7 years.

HomeCo also announced the establishment of a joint venture with operator Acurio Health Group to acquire and develop a five-hectare integrated private hospital in Camden, NSW.

Acurio and HealthCo have agreed to collaborate on the development of a 78-bed comprehensive private hospital (stage 1), which will be leased to Acurio for 15 years.

The joint venture will also construct an integrated health and innovation district (stages 2 and 3) with a potential ultimate value of $500 million or more, the company said.

State Significant Development Approval for a mixed-use medical complex, including approval for a large-scale general hospital and biotech institution, has been granted to the parcels of land.

HomeCo has committed to pay at least $70 million of capex for stage 1 of the project, with building anticipated to begin in October 2021.

The acquisitions, according to HomeCo managing director and CEO David Di Pilla demonstrates its ability to source high-quality healthcare assets which align with the model portfolio strategy for HealthCo.

“We are pleased to establish strategic partnerships with both GenesisCare and Acurio,” he said.

“In particular, we look forward to the development at Camden as part of our significant broader involvement in the Western Sydney growth corridor.”

The acquisitions come off the back of the group acquiring Health Hub Morayfield for $110 million and two childcare facilities for a combined $23.2 million in May.

Capital raising update

HomeCo’s previously announced plan of forming ASX-listed and unlisted HealthCo by the end of the calendar year is still on track, the company said.

The IPO process for future ASX-listed HealthCo, which aims to raise at least $500 million in equity, has begun, with a target date of 1H FY22.

Unlisted HealthCo Fund is likewise on pace to launch before the end of the calendar year, with a target equity raising of $1 billion and an initial first closure of at least $500 million.

HomeCo announced that Chris Roberts, former CEO of Cochlear, has joined the proposed board of ASX-listed HealthCo.

The company reconfirmed its FY21 FFO guidance of $35 million (12.9 cents per security) and also confirmed its dividend forecast for FY21 of 12 cents per share.

Shares in Home Consortium are up 0.19 per cent, trading at $5.37 per share at 12:00 pm AEST.

HMC by the numbers
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