HomeCo Managing Director and CEO, David Di Pilla, has moved quickly to capitalise on the group’s new Healthcare and Wellness REIT, entering a strategic alliance with the Melbourne-based property developer PDG Corporation to collaborate on developing healthcare and wellness precincts, initially in Victoria before moving into other states.
As we reported here, HomeCo successfully launched Australia’s first ASX-listed diversified healthcare REIT HealthCo two weeks ago following a successful IPO roadshow which resulted in the IPO being increased to $650 million from $600 million.
HealthCo already has a $400 million fully undrawn committed debt facility lined up and has promised to target a range of healthcare sub-sectors including childcare, aged care, primary medical, hospitals and life sciences.
A study conducted by L.E.K. Consulting co for HealthCo earlier this year identified at least $87 billion of new investment is required for asset development across these five health and wellness sectors, including 72 emerging or planned Health Research and Innovation precincts around Australia – 20 of which are in Victoria (see image).
Several aged care and retirement living operators have worked on or are developing precincts that combine healthcare and ageing services – Australian Unity’s Herston Quarter in Brisbane being the notable scale – but these projects are typically ‘one-off’ developments.
Mr Di Pilla said the partnership is already “well advanced on several opportunities”.
“We believe the combination of PDG’s integrated delivery capability and HomeCo’s expertise in ownership, development and strategic investment will be a compelling proposition,” he stated.
“We anticipate being able to jointly develop world class precincts that we hope will become a part of Victoria and Australia’s healthcare landscape for the future.”
HealthCo is expected to list on the ASX next month, with HomeCo also targeting the establishment of an unlisted fund focused on the health and wellness sectors by 2H21.