Sydney-based HMC Capital has launched two new real estate funds targetting last-mile logistics and healthcare.
HMC Capital is also completing a A$300m (€208m) first close of its HMC Capital Partners Fund 1 fund and expects to soon embark on a second fundraising round.
HMC Capital’s managing director, David Di Pilla, said that, over the next six months, the firm was targetting to lift funds raised for the first unlisted fund to A$500m, and then, over time, to A$1.5bn.
The fund will target public and private companies with real asset backing.
Di Pilla said the fund’s first investment would be a (13.5%) stake in Sigma Healthcare, currently held on HMC Capital’s balance sheet. Sigma’s key asset is a large distribution centre.
“We will transfer Sigma Healthcare to the new fund at cost (A$80m),” he said, adding that the value of the Sigma stake had increased by some 22% to almost A$100m.
The manager is also launching a billion-dollar-plus last-mile logistics value-add fund.
De Pilla told IPE Real Assets: “Most of the large national retailers are using their store networks to provide direct-to-home Omni channel delivery.
“Today, the right assets in the retail space can be repurposed for last-mile logistics and infrastructure.
“We will look for existing retail and services assets which need investment and remixing, then turn them around for last-mile logistics.
“Our initial target is to raise capital (equity and debt) to acquire A$1bn worth of assets for this close-ended fund.”
Di Pilla also flagged the creation of a new vehicle to bring in a capital partner to co-invest in the second and third phases of its A$500m health and medical research precinct in Camden, in Sydney’s south.
“We are 60% through the construction stage of phase one, which will be a 78-bed paediatric hospital,” he said. The hospital is being funded by the group.
“Stages 2 and 3 will be a general hospital and medical research facilities, with an end-value of more than A$400m.
“We are looking to bring in institutional capital to invest in the asset alongside our listed healthcare REIT.”
HMC Capital, which has A$5.8bn in external assets under management, listed its HomeCo Daily Needs REIT in 2020 and the Healthco Healthcare and Wellness REIT last year.
To read the latest edition of the latest IPE Real Assets magazine click here.
