This article is from the Australian Property Journal archive
HMC Capital (ASX:HMC) has successfully reached first close on its circa $800 million Last Mile Logistics Fund and now set to establish over $2 billion in unlisted funds.
HMC Capital’s update reaffirmed its DPS guidance of 12 cents for FY23 and announced it was on track to achieve its $10 billion committed AUM target 12 months ahead of schedule, at the end of 2023.
With the successful first close of the Last Mile Logistics Fund 1, $400 million of equity commitments were secured, including $350 million from a major Australian institutional investor and $50 million from HomeCo Daily Needs REIT (ASX: HDN).
HMC is also on-track to reach first close for its circa $1 billion Unlisted Healthcare & Life Sciences fund (UHF) by September this year, as announced at the time of its Healthscope hospital portfolio acquisition in March.
UHF reached settlement on $474 million of the Healthscope hospital portfolio acquisition in May, thanks to upfront equity funding support from HealthCo (ASX: HCW).
The remaining $470 million in Healthscope assets is set to be settled in September, with third party institutional capital.
HMC Capital Partners Fund I (HMCCP) also recently announced a major contract win for its investee company Sigma Healthcare (ASX: SIG).
On 6 June, SIG announced it had been awarded a major supply contract from Chemist Warehouse for a period of five years from 1 July 2024.
Sigma will be Chemist Warehouse’s major supply partner for both Pharmaceutical Benefits Scheme (PBS) medicines and Fast-Moving-Consumer-Goods (FMCG) when the contract comes into effect.
The deal will generate a minimum of $3 billion for Sigma in its first year and has already resulted in a share price increase of 35% since the announcement.
Since its inception the fund has generated a circa 16% return for unit holders, outperforming the S&P/ASX 300 accumulation index by 750bps4 and the 7% performance fee hurdle rate.
“We are delighted with the strong investment performance to date which is a testament to the fund’s unique investment process and ability to work proactively with our investee companies such as Sigma to unlock value,” Victoria Hardie, managing director at HMC Capital Partners.
“HMCCP is actively deploying into two other high conviction opportunities where we see material upside potential”.
