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- Ahead of the establishment of an ASX-listed fund, Home Consortium (HMC) has nabbed $132.2 million worth of assets
- The group acquired Health Hub Morayfield for $110 million and two childcare facilities for a combined $23.2 million
- Following these investments, HealthCo’s seed fund now stands at about $480 million, with a further $300 million in assets under due diligence
- These purchases will be kept on the balance sheet until a proposed ASX-listed and unlisted fund is established later this calendar year
- HomeCo reaffirmed its dividend forecast for FY21 of 12 cents per share
- HMC shares are trading at $4.69, up 3.3 per cent
Ahead of the establishment of an ASX-listed fund, Home Consortium (HMC) has nabbed $132.2 million worth of assets.
The group acquired Health Hub Morayfield for $110 million and two childcare facilities for a combined $23.2 million.
Following these investments, HealthCo’s seed fund now stands at about $480 million, with a further $300 million in assets under due diligence.
These purchases will be kept on the balance sheet until a proposed ASX-listed and unlisted fund is established later this calendar year.
In announcing the acquisitions, HomeCo reiterated its FY21 outlook of $35 million (12.9 cents per security).
It also reaffirmed its dividend forecast of 12 cents per share.
“We remain on track to establish HealthCo later this year and today’s update further demonstrates our ability to source high quality assets which are well suited to the model portfolio strategy we announced last month for HealthCo,” HomeCo Managing Director and CEO David Di Pilla said.
“Pleasingly, we continue to execute our strategy in a capital efficient manner through active capital recycling. Our balance sheet is well capitalised with minimal debt, providing us with significant capacity to secure additional assets for HealthCo including several which are currently under due diligence,” he added.
HomeCo has entered into a put and call option to purchase Health Hub Morayfield, QLD for $110 million, which represents a 5.40 per cent capitalisation cost, according to the company.
The company also announced the acquisition of two child care properties.
It completed the acquisition of a standalone childcare centre leased to Busy Bees in Woolloongabba in April 2021.
The company said the asset was acquired for $13 million reflecting a capitalisation rate of 5.5 per cent.
HomeCo also recently exchanged contracts on a standalone childcare centre in Five Dock, NSW, leased to Greenwood and is expected to settle in late May 2021.
The asset was acquired for $10.2 million reflecting a capitalisation rate of 5.5 per cent, according to the company.
HomeCo also announced a further sale amongst its large format retail portfolio (LFR), exchanging property in Morayfield, QLD, with settlement expected to occur in late May 2021.
The company said the sale will realise gross proceeds of $28.4 million, 3.5 per cent above 31 December 2020 book value.
This sale builds upon the previously announced sale of an LFR property in Bathurst, NSW on 29 January 2021.
The company’s fully held portfolio of LFR securities will decline to $154.6 million after these purchases and the recently reported LFR asset sales of $266.4 million to HomeCo Daily Needs REIT (HDN).
Following Monday’s announcement, HMC shares are trading at $4.69, up 3.3 per cent at 11:20 AM AEST.
