Home Consortium (HomeCo), founded by Managing Director and CEO David Di Pilla, will co-invest with its unlisted wholesale sister fund in major aged care facilities and other healthcare assets when it lists on the Australian Stock Exchange (ASX) later this year.
Mr Di Pilla (pictured right) is Chairman of Aurrum Aged Care, which HomeCo bought individual facilities in July last year. Arrum Aged Care also owns 9.22% of ASXC-listed healthcare operator Japara, whose board on Tuesday announced it recommended the offer from Calvary to buy it entirely.
Aurrum Aged Care announced in February Aurrum Kids – Childcare & Preschool and that it was developing six new child care centres in conjunction with HomeCo.
It does not need a crystal ball to think HomeCo would throw its newly found weight at Archer Capital’s aged care business Allity, which owns 44 aged care homes in Queensland, NSW, Victoria and South Australia. It bought the homes from Lendlease for $270 million in 2013.
HomeCo will retain a minimum 20 per cent shareholding in HealthCo REIT, which is forecast to generate a 4.5 per cent distribution yield across a $555 million portfolio.
The co-ownership model was disclosed in a HomeCo IPO briefing presentation as it starts to market its ASX float at investors and after it lifted its equity raise by $100 million to $600 million.
HomeCo will seek to raise another $500 million this year for its unlisted healthcare fund as part of Mr Di Pilla’s ambition to be a player in the healthcare real estate sector.
If Mr Di Pilla raises another $500 million, the two healthcare funds will have more than $1 billion of private hospitals, aged care facilities, child care centres, medical centres and life science hubs tenanted by the likes of GenesisCare, Home Co’s Aurrum Aged Care, The Uniting Church, the Commonwealth Government and Acurio Health Group on long lease.