HMC Capital grows assets under management to $7.5 billion

HMC Capital (ASX.HMC) grows assets under management to $7.5 billion. 

Today, HMC announces the $1.2bn acquisition of Healthscope Hospital Portfolio on behalf of HealthCo Healthcare & Wellness REIT (ASX.HCW) and the new $2bn+ Healthcare and Life Sciences Unlisted Fund (Unlisted Fund) targeting a 10%+ equity IRR. 

The entities managed by HMC have entered into arrangements to acquire from Medical Properties Trust, Inc (NYSE: MPW), a 100% interest in 11 private hospitals leased to Healthscope for a purchase price of $1,200m. 

HMC Capital Managing Director and CEO, David Di Pilla, said “HMC Capital is pleased to announce another major transaction for the group which delivers on our strategy to deploy capital into high quality alternative assets with significant pricing power and development upside on behalf of our capital partners. Our partnership with Healthscope on this transaction enabled HMC Capital to shape a compelling transaction with a significantly improved tenant covenant and rental growth upside via CPI-linked indexation and higher development returns.”

The transformative acquisition for HCW is to be funded by $320m underwritten capital raising with strong support from HMC as manager via $123m commitments in the entitlement offer.  HMC funding commitments supported by capacity of $350m+ following $125m fully underwritten institutional placement and indicative commitments to increase debt facilities.

This transaction demonstrates HMC’s ability to execute value creating, large, complex transactions and accelerate towards our 20%+ return on equity target over the medium term. HMC is now expecting to achieve $10bn AUM target by year-end 2023

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