This article is from the Australian Property Journal archive
FOLLOWING the successful IPO roadshow for its new healthcare property trust, Home Consortium (HomeCo) has struck an agreement with PDG Corporation to collaborate on developing healthcare precincts as momentum builds in the sector.
The memorandum of understanding has an initial focus on Victorian opportunities before expanding into other Australian markets.
“The partnership will combine the financial, structuring and balance sheet strength of HomeCo with the PDG Corporation’s world-class design, development and delivery capability,” HomeCo said.
HomeCo earlier this month said stronger-than-expected investor interest saw the underwriting agreement for its ASX-listed HealthCo Healthcare and Wellness REIT upsized for a second time, to $650 million.
HomeCo recently confirmed its $80 million acquisition of the Proxima project on the Gold Coast for the spin-off trust. The Southport project will be first health building within the Queensland government’s Lumina development, a 9.5-hectare zone dedicated to life sciences, health and technology-related businesses.
HealthCo is expected to list early next month with a $400 million fully undrawn committed debt facility, while HomeCo is also setting up a $500 million companion unlisted wholesale REIT.
HomeCo said the alliance would aim to tap into the “opportunity-rich healthcare sub-sectors” being targeted by HealthCo across childcare, aged care, primary medical, hospitals and life sciences. It cited an L.E.K. Consulting study into the health care property sector in Australia for HealthCo earlier this year that identified at least $87 billion of new investment is required for asset development across the five health and wellness sectors that comprise the diversified HealthCo model portfolio.
That includes 72 emerging or planned health research and innovation precincts around Australia, of which 20 are in the target state of Victoria.
PDG’s portfolio in the healthcare and life sciences sector includes global biotech CSL’s future integrated laboratory and headquarters at Melbourne’s biomedical precinct in Parkville and the Queen Victoria Market development in partnership with the City of Melbourne.
HomeCo’s managing director and CEO, David Di Pilla said the establishment of a formal MoU between the parties was a natural extension of a number of joint projects we are exploring and we are well advanced on several opportunities.
HomeCo also recently purchased an eight-property portfolio operated by GenesisCare and a potential $500 million hospital and bio-med research precinct in south western Sydney’s Camden for HealthCo, as well as Health Hub Morayfield for $110 million and $23.2 million of childcare centres in Brisbane and Sydney.
Listed groups are becoming more active in the healthcare space across their platforms. Among those, Centuria Healthcare will build a new $64 million private hospital in Melbourne’s inner-east after entering into an agreement with doctor-led joint venture with insurer Medibank, and Centuria has expanded its unlisted healthcare property fund with $57.3 million worth of medical centres.
Major deals have also seen Dexus joined forces with its Healthcare Wholesale Property Fund to buy the Australian Bragg Centre in Adelaide for $446.2 million, and Elanor has made multiple healthcare asset acquisitions in Brisbane and Perth.
