A consortium led by HMC Capital has made an offer to buy Healthscope hospitals, Australia’s second-largest private hospital operator, according to a report by Reuters citing information from HealthCo Healthcare and Wellness REIT, which owns a significant portion of the Healthscope portfolio.
Healthscope operates approximately 38 hospitals and contributes nearly 59% of HealthCo’s gross earnings, making it a critical asset within the REIT’s portfolio. With an estimated market value of AUD1.5bn, the potential acquisition marks a significant strategic move for HMC Capital, which has a growing presence in Australia’s healthcare and infrastructure sectors.
HMC Capital has been instrumental in shaping HealthCo’s hospital investments. In 2023, HealthCo acquired 11 Healthscope hospitals from Medical Properties Trust for AUD1.2bn, a deal that was backed by HMC Capital. Now, HMC Capital is positioning itself to take an even larger role through its private equity division, potentially reshaping Healthscope’s operations and capital structure.
Healthscope’s hospitals are a cornerstone of HealthCo’s portfolio and a critical part of Australia’s private healthcare landscape. The company was acquired by Brookfield in 2019, but a portion of its hospital assets was sold to Medical Properties Trust before being transferred to HealthCo.
HMC Capital has been making waves in Australia’s asset management sector. In 2023, the firm launched the country’s largest IPO through DigiCo REIT, a digital infrastructure trust focusing on data centres. The move into digital infrastructure complements HMC’s growing healthcare investments, signalling a diversified strategy aimed at capitalising on emerging opportunities across sectors.
Despite the potential buyout, HealthCo’s shares, which have dropped approximately 12% since their 2021 debut, closed flat on Friday after an initial spike.
