HomeCo has announced it wishes to establish an ASX-listed Healthcare & Wellness REIT (real estate investment trust) which will be called HealthCo.
HomeCo states HealthCo increases HomeCo’s exposure to the healthcare & wellness sector with an attractive first investment in the opportunity-rich aged care sector and the establishment of an operating partner in the space. Planning for Healthcare & Wellness REIT remains on foot.
HomeCo intends for HealthCo to make up 21% of its larger property investment portfolio, with targets of childcare, aged care, medical centres, radiology, gyms and government services.
It appears HealthCo also intends to be an operator, or be closely aligned with operators, such as Aurrum who is extending the brand to childcare.
Looking forward, the exciting prospect is investors like HealthCo are demonstrating a strategic preparedness to invest in models that open up new markets, such as private aged care operating under retirement village legislation.
The challenge for operators will be that they will have to perform and be successful based on the services they provide as they won’t have property as the cornerstone of their balance sheets.
