Why the Home Consortium (ASX:HMC) share price is on watch

The Home Consortium (ASX: HMC) share price will be on watch in early trade after the company upsized a proposed healthcare REIT investment.

The Home Consortium Ltd (ASX: HMC) share price is one to watch this morning after an update on the company's healthcare real estate investment trust (REIT) plans.

asx share price on watch represented by lady looking through pair of binoculars

Image source: Getty Images

Why is the Home Consortium share price on watch?

Home Consortium has previously announced plans to create an ASX-listed, healthcare-focused REIT called HealthCo. Today's announcement provided an update to investors on the latest plans for the vehicle.

The soon-to-be-created HealthCo will target "a model portfolio of assets in key sub-sectors including hospitals, primary care, childcare, aged care and life sciences".

The Aussie REIT is targeting an initial equity raise of $1.0 billion – double that previously planned and announced in its half-year results. That's on the back of positive feedback from investors and strong demand for healthcare assets.

The Home Consortium share price is one to watch as investors digest the latest plans. Home Consortium will target a 10% to 15% investment over the long term and contribute $250 million in seed assets from its balance sheet.

Today also saw Home Consortium unveil HealthCo's advisory board and portfolio manager. Among the names are ex-PwC and EY managing partner, Joseph Carrozzi, and former Ramsay Health Care Limited (ASX: RHC) CEO, Danny Sims. Other advisory board members include:

  • Former Guardian Early Learning CEO, Tom Hardwick;
  • Former CIO of MLC Private Equity, Natalie Meyenn; and
  • Former Dean of Medicine at the University of Sydney, Prof. Bruce Robinson.

Home Consortium has also unveiled Macquarie Capital, Morgan Stanley and Morgans Financials as financial advisers for the HealthCo raise with Sam Morris appointed Senior Portfolio Manager.

Foolish takeaway

The Home Consortium share price will be one to watch when the market opens. Shares in the Aussie REIT have jumped 18.4% so far this year and closed at a 52-week high yesterday.

The ambitious HealthCo plans will have investors watching closely in early trade as Home Consortium looks to double its initial investment plans.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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