The recent acquisitions include 8 private oncology assets with triple-net leases from GenesisCare for $110.3 million plus the establishment of joint venture with operator Acurio Health Group (Acurio) to acquire a 5 hectare site for $29.2m to create and develop an integrated private hospital anchored health precinct in Camden NSW.

HomeCo Managing Director and Chief Executive Officer David Di Pilla said: "Today’s acquisition update further demonstrates our ability to source high quality healthcare assets which align to the model portfolio strategy for HealthCo. 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.”

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GenesisCare sale-and-leaseback a national property portfolio:

HomeCo has agreed to acquire via sale-and-leaseback a national property portfolio from global oncology care provider GenesisCare. GenesisCare is one of the largest independent providers of integrated oncology services with over 440 clinics internationally, including 370 radiation therapy treatment centres in Australia, USA, UK and Spain.

The acquisition price of $110.3 million reflects a weighted average passing yield of approximately 4.5%. 

The portfolio provides attractive income security and growth characteristics:

•  Triple-net leases
• WALE of 10.7 years (with long term options across all properties) 
• Strong embedded rental growth and inflation protection

We understand that leading Australian Healthcare and Social infrastructure team of CBREs Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto handled the GenesisCare transaction. The team were unavailable for comment. 

Camden Integrated Hospital Anchored Health Precinct Development:

The agreed acquisition of a 5 hectare site across three parcels of land in Camden, NSW will unlock a significant development pipeline for HealthCo in Australia’s fastest growing local government area (LGA)4.

HealthCo has agreed to partner with Acurio to initially develop a 78 bed integrated private hospital5 (stage 1) which will be leased to Acurio under a 15 year lease. In addition, the joint venture will develop an integrated health and innovation precinct (stages 2 & 3) with a potential end value of $500+ million. The parcels of land have State Significant Development Approval for a mixed-use medical campus including approval for a large scale general hospital and biomedical facility.

For stage 1 of the project, HomeCo has agreed terms to fund at least $70 million of capex and construction is expected to commence by October 2021.

Camden presents a significant long term investment opportunity for HealthCo and is underpinned by attractive growth demographics including:

• Population growth: Camden is forecast to be among the fastest population growth LGAs in Australia, with forecast growth of 4.5% per annum from 2021-2041
• Ageing population: the over 65 age group in South-West Sydney is expected to increase 74% by 2031, and 92% in the over 85 age group7.
• High private health insurance coverage: Camden has 58% private health insurance coverage vs NSW average of 46% and surrounding LGA average of 30%8
• Undersupply of private hospital beds: preliminary needs analysis estimates a current deficit of ~500 overnight and ~150 same day private beds in Sydney’s South West and Outer South West vs available supply.

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