ASX‑listed alternative asset manager HMC Capital is planning to raise A$1bn (€643m) for a healthcare and life sciences vehicle, which is expected to hit the market next year. 

David Di Pilla, chief executive officer of HCM Capital, told IPE Real Assets there was “a strong level of interest from both domestic and global institutional investors” in such a vehicle.

“We need first to assemble a seed portfolio. We are building an attractive pipeline of development opportunities that are higher returning [than stabilised assets],” he said.

“We are going to blend development with other opportunities we are looking to acquire.”

Di Pilla told analysts during an earnings call that the unlisted fund would be seeded with the parent company’s interest in the Camden health precinct, currently under development. HMC Capital had an interest in the second and third stages of this project, on the southern outskirts of Sydney.

Sam Morris, senior portfolio fund manager of the listed HCW REIT told IPE Real Assets that there was a “natural fit” between the listed and unlisted funds.

“We see the unlisted health and life sciences development fund becoming a funding partner to the listed REIT, he said.

HMC Capital launched its first unlisted vehicle last year to invest in last-mile logistics.

Di Pilla said the fund expected to bring in a large investor, who was currently doing due diligence, by the middle of the year, taking the total raising to A$500m.

Together with A$92m raised last December, the latest commitment would help the unlisted last mile fund reach its A$1bn target.

“We have seeded the fund with A$160m worth of assets,” he said, adding that, given available opportunities to acquire assets from “motivated” sellers at attractive prices, the fund would certainly deploy its capital within this year.

He said HMC Capital would move on to the “next series” of capital raising for a second fund within its unlisted last mile logistics platform.

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