Australian asset manager HMC Capital Ltd said on Thursday it will buy 11 private hospitals from U.S.-based Medical Properties Trust for A$1.20 billion ($802.08 million).
The hospitals are currently managed by Brookfield Corp’s Healthscope, the second-largest private hospital operator in Australia.
The properties – four mental health hospitals and seven acute care hospitals – will be split between HMC’s Healthco Healthcare and Wellness REIT (HCW) and a newly created healthcare fund.
HCW will fund A$730 million of the purchase price and raise A$320 million through asset sales and equity raisings. Additionally, HMC Capital will raise A$123 million to fund the transaction.
“This acquisition transforms HCW into Australia’s largest diversified healthcare REIT with greater exposure to critical healthcare infrastructure in Australia’s major capital cities,” said HMC Capital CEO David Di Pilla.
HCW is now well-positioned for inclusion in the S&P/ASX300 index, he added.
Medical Properties had acquired the 11 hospitals in Australia from Healthscope back in 2019 for $859 million, but leased them back to the private hospital operator to manage daily operations.
In a separate announcement, the U.S. company said demand for hospital assets remains resilient and the deal is expected to be completed in the second half of 2023.
Based in Birmingham, Alabama, Medical Properties Trust is the second-largest non-governmental owner of hospitals in the world with properties across the U.S., UK, Switzerland, Germany and Australia, according to its website.
HMC Capital is a Sydney-based asset manager founded and backed by banker-turned-investor David Di Pilla. It is now expecting to achieve assets under management of A$10 billion by end of 2023.
Source: Reuters.com