Health Co IPO
Can you please provide your view on new REIT IPO - Health Co, HCW. Would MM participate and your target price? Are they similar health related REIT’s on the ASX? Jacky L.
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Answer
Hi Jacky,
Home Consortium (HMC) is a ~$1.6b ASX listed company that is raising further capital and listing their Healthcare focused real-estate investment trust (REIT) called HealthCo on the ASX in September under code HCW.
They have upsized their float to $650m due to strong demand meaning that after the IPO the REIT will have $300m worth of liquidity for accretive acquisitions although there aren’t many “cheap” assets around in today’s market. While I haven’t been involved in this IPO, I am across Home Consortium (HMC) who are very good operators in the space. While not specifically in the Healthcare space, a better known comparison would be Centuria Capital Group (CNI) which is the head company who then have a number of listed REIT’s under their umbrella such as the Centuria Industrial REIT (CIP) & Centuria Office REIT (COF).
Overall, the REITS index remains bullish but not exciting as would be expected, we like the pending HCW float along with the head stock being HMC.
