Last week’s rumours have been confirmed with the property investment management company announcing on Tuesday that it will be looking to raise an initial $1 billion – double the size of the proposed equity raising flagged in its February HY results – to establish its new health and wellness fund which will include aged care.
Home Consortium – led by Managing Director and CEO, and Aurrum Aged Care Chairman, David di Pilla (pictured) – flagged last July that it wanted to establish an ASX-listed real estate investment trust and unlisted wholesale vehicle to target a range of assets including aged care, hospitals, primary care, childcare, and life sciences.
“Feedback from investors has provided us with confidence that there is significant appetite for exposure to the health and wellness sector,” HomeCo Group Head of Capital Partnerships, Heechung Sung said.
“The sector is highly attractive given its diversification benefits and the critical need nationally, to build future capacity for the delivery of health services. HealthCo is uniquely positioned to offer investors the potential to scale up exposure to this growth sector in a carefully constructed, well managed diversified portfolio of assets.”
HomeCo will now target a 10-15% investment in HealthCo over the long term and contribute $250 million of stabilised seed assets ($350 million on an as-complete basis) which is currently held on its balance sheet.
In total, HealthCo has $800 million of seed assets, currently under due diligence or held on HomeCo’s balance sheet.
The group has established a specialist advisory board to assist with the implementation of the HealthCo strategy, including:
- Danny Sims (pictured) – Former CEO of Ramsay Health Care Australia
- Joseph Carrozzi – Former Managing Partner at PwC & EY and Chairman, Centenary Institute for Medical Research
- Tom Hardwick – Former CEO of Guardian Early Learning
- Natalie Meyenn – Former CIO of MLC Private Equity
- Prof. Bruce Robinson – Former Dean of Medicine, University of Sydney & MBS Review Chairman
HomeCo has also appointed former Head of ANZ Health, Sam Morris, who previously headed up the bank’s national health business, as HealthCo’s Senior Portfolio Manager.
Macquarie Capital and Morgan Stanley are also in the mix as joint lead managers and financial advisers on the rollout, with Morgans Financial Limited to spearhead the establishment and listing of HealthCo.
“The proposed HealthCo is on track and it is pleasing to receive positive investor demand for the proposed vehicles,” Mr di Pilla stated.
“The proposed establishment of HealthCo is transformational for HomeCo and accelerates our transition to a capital light structure with a significantly larger asset base generating annuity income streams.”