- HomeCo on track to launch HealthCo REIT later this year
- A health club and two child care centres have been acquired for $133M
- HealthCo’s seed portfolio is $480M, with another $300M in due diligence
Home Consortium (ASX:HMC) has announced an agreement to acquire Health Hub Morayfield (Queensland) for $110 million.
In addition, HomeCo has secured $23.2 million in two childcare acquisitions: one in Woolloongabba, Brisbane, Queensland, and the other in Five Dock, in the inner west of Sydney, NSW.
These acquisitions will be warehoused on the balance sheet prior to the proposed establishment of an ASX-listed and unlisted fund later this calendar year, a statement to the ASX said.
This is all part of the company’s strategy to create a new billion-dollar health, wellness and government focussed REIT (real estate investment trust) ‘HealthCo‘.
Following these acquisitions, HealthCo’s seed portfolio has increased to $480 million and will be growing larger soon, as there are $300 million of additional assets currently under due diligence.
At the same time, HomeCo is selling a large format retail (LFR) asset in Morayfield, Qld, having previously sold an LFR in Bathurst, NSW.
“We remain on track to establish HealthCo later this year and today’s update further demonstrates our ability to source high-quality assets which are well suited to the model portfolio strategy we announced last month for HealthCo,” said CEO David Di Pilla
“Pleasingly, we continue to execute our strategy in a capital-efficient manner through active capital recycling.
Our balance sheet is well capitalised with minimal debt, providing us with significant capacity to secure additional assets for HealthCo including several which are currently under due diligence.”
David Di Pilla, Managing Director and CEO, HomeCo
HomeCo also reaffirmed funds from operations (FFO) guidance of $35 million, and dividends of 12 cents per security.