HMC Capital: Hospitals give boost to AUM

About the author:

Fiona Buchanan
Author name:
By Fiona Buchanan
Job title:
Co-Head of Research, Senior Analyst
Date posted:
09 May 2023, 7:30 AM
Sectors Covered:
Property, AREITS

  • HMC (as manager of HCW) has committed to acquire 11 hospitals leased to Healthscope for $1.2bn (settlement FY23/24) with the assets to be owned across both HCW (listed) and an unlisted healthcare fund.
  • As a result, HCW has raised $320m via a placement and entitlement issue. In order to support its commitments to the raising, HMC raised $125m via a fully underwritten placement at $3.50 (11.9% of shares on issue). A further $39m was raised via a non-underwritten SPP (upscaled from $30m).
  • AUM will grow to ~$7.5bn post the hospital acquisitions and HMC expects to hit ~$10bn of AUM by Dec-23 (12 months ahead of guidance). The near-term focus relates to fund raising across the unlisted funds (HMC Capital Partners; Healthcare & Life Sciences, and Last Mile Logistics) as well as executing on the development pipelines within HCW, HDN and the unlisted Healthcare Fund.
  • We retain an Add rating with a revised price target of (login to view).

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