hospital sign entrance front emergency
Image – Canva.
  • Original proposed equity raise for new arm of HomeCo doubled
  • Advisory board established, including former Dean of Medicine (USyd) and former head of Ramsay Health Care
  • HealthCo to be both listed and unlisted, investing in early learning, hospitals, aged care and more

Home Consortium (ASX: HMC), also known as HomeCo, updated the market on its HealthCo establishment plans today, announcing the doubling of the previously proposed equity raising efforts from $500 million to $1 billion.

Back in late February, the company announced in its half-yearly results that HealthCo had some $350 million of proposed seed assets, and was targeting $500 million by H1FY22.

Alongside the equity raise announcement, HealthCo also announced the appointment of its advisory board, including a number of distinguished individuals from the medical sphere including former Dean of Medicine at the University of Sydney, Professor Bruce Robinson, and a number of former c-suite officers and managing partners for early learning companies, Ramsay Health Care, and the Chairman for Centenary Insitute for Medical Research Mr Joseph Carrozzi.

What is HealthCo?

The health focussed portfolio is said to include “key subsectors including hospitals, primary care, childcare, aged care and life sciences.”

The new establishment will include “both an ASX-listed real estate investment trust and unlisted wholesale vehicle.”

healthco model portfolio diagram
Model Portfolio Construction as found in the HealthCo announcement 13 April 2021. Image – Home Consortium (ASX: HMC).

HomeCo said the proposed model is a golden opportunity for the company, especially considering it is a niche that currently doesn’t exist in the market:

“The strategy to establish two capital sources across the listed and unlisted markets reflects the breadth of the investment opportunity universe and the strong level of investor demand for this exposure which is currently unavailable at institutional scale on the ASX.”

Home Consortium

The now $1 billion equity raise proposed for HealthCo is a move that provides a deal of flexibility and robustness to the portfolio, said HomeCo Group Head of Capital Partnerships Heechung Sung.

“Feedback from investors has provided us with confidence that there is significant appetite for exposure to the health and wellnesssector. The sector is highly attractive given its diversification benefits and the critical need nationally, to build future capacity for the delivery of health services.”

Heechung Sung, HomeCo Group Head of Capital Partnerships

HomeCo also said it “will target maintaining a 10-15% investment over the long term and will contribute $250 million of stabilised seed assets ($350 million on an as-complete basis) currently held on HomeCo’s balance sheet. The acquisition pipeline for HealthCo continues to grow with ~$800 million of assets, currently under due diligence or held on HomeCo’s balance sheet as seed assets.”

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