HealthCo Healthcare and Wellness REIT unveils a mouth-watering $1.2bn deal
Nick Sundich, March 30, 2023
HealthCo Healthcare and Wellness REIT (ASX:HCW) has announced a $1.2bn deal to buy 11 private US hospitals from Medical Properties Trust (NYSE:MPW). The assets will be included in a new unlisted fund and may see HCW join the ASX 300.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
HealthCo Healthcare and Wellness REIT aspiring to grow in a tough period for REITs
It has been a difficult period for REITs as rising interest rates across the world hit the property market.
But evidently not all sectors have been as hard hit as others – the health sector has held strong given that it is critical infrastructure.
The properties were secured by HealthCo Healthcare and Wellness REIT at a purchase price representing an acquisition NOI yield of 5.8% and an unlevered IRR of >9%. The properties are leased at 16-year initial terms with 8 10 year options and CPI-linked rent increases.
Going for further growth
This deal brings HealthCo Healthcare and Wellness REIT’s Assets Under Management (AUM) to $7.5bn and it is aspiring to reach $10bn by the end of 2023.
It will be funded by a $125m capital raising and increased debt facilities, although it has promised to use $350m of its own cash.
HealthCo Healthcare and Wellness REIT’s reiterated its FY23 DPS guidance of 12c per share, representing an impressive 8.4% yield at yesterday’s closing price.
This deal could well see this REIT join the ASX 300 at the next index rebalancing, something which would trigger mandatory institutional buying of the stock.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
There’s no credit card needed – the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Here’s why Rich Lister WiseTech boss Richard White ‘stood down’, and how the A$30bn+ cargo software giant may be affected
WiseTech boss Richard White has been viewed as a key reason for his company’s success over its 30-year history and…
Is the S&P 500 Really Doomed to a ‘Lost Decade’? Goldman Sachs thinks so, but will it eventuate?
The term ‘Lost Decade’ gets thrown about a lot, but most recently to the next decade to the S&P 500.…
Halloween Stocks: Here are 5 ASX Stocks that Will Benefit from Halloween
Here are 5 ASX Halloween Stocks! The Reject Shop (ASX:TRS) The Reject Shop is one of Australia’s most notable…