HealthCo, a portfolio of healthcare properties managed by Home Consortium (ASX: HMC) (HomeCo), is now worth approximately $1 billion following the acquisition of eight oncology assets - just as the fund is gearing up for a late-2021 ASX listing.
On the back of this milestone, HomeCo has also announced it is establishing a joint venture to acquire and develop a private hospital in Camden, New South Wales, with construction on the facility to begin in October this year.
The announcement comes just months after HealthCo announced $133.2 million in health and childcare property acquisitions, with the bulk used for the purchase of Health Hub Morayfield in Queensland's Moreton Bay area.
"Today's acquisition update further demonstrates our ability to source high quality healthcare assets which align to the model portfolio strategy for HealthCo," HCM managing director and CEO David Di Pilla said.
"We are pleased to establish strategic partnerships with both GenesisCare and Acurio.
"In particular, we look forward to the development at Camden as part of our significant broader involvement in the Western Sydney growth corridor."
While HMC's move into the oncology space is significant for the fund, for GenesisCare the sale of eight clinics is a drop in the ocean.
The company, founded by Dan Collins in Brisbane and now based in Perth, is a world leader in oncology services with more than 440 clinics internationally, including 370 radiation therapy treatment centres in Australia, USA, UK and Spain.
Post-sale, GenesisCare will continue to operate each centre and there will be no impact on patient care.
Meanwhile, HMC's JV with Acurio will see the two develop a 78-bed integrated private hospital, to be leased to Acurio under a 15-year lease.
For Stage 1 of the project, HomeCo has agreed to fund at least $70 million of capex and construction, with the build to begin by October 2021.
HealthCo says the new hospital, to be based in one of Australia's fastest local government areas of Camden, will benefit from attractive growth demographics including an ageing population, high private health insurance coverage and an undersupply of private hospital beds.
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