ASX-listed HMC Capital has agreed to buy a portfolio of private hospitals, leased to Australian healthcare operator Healthscope, from in the New York-listed Medical Properties Trust for A$1.2 billion (€738m).

Medical Properties Trust purchased half of the Healthscope hospital portfolio from Brookfield after the Canadian investor took over Healthscope in 2019 for A$4bn.

HMC is understood to have negotiated to buy the assets in three tranches with the cost to be shared between three entities – the main listed company, the listed HealthCo Healthcare & Well REIT (HCW) and a newly established Healthcare and Life Sciences Unlisted Fund.

It is planned for HCW to acquire four mental health and rehabilitation hospitals for A$256m in the first tranche.

The unlisted vehicle will acquire three acute care hospitals for A$474m in a second tranche, with the remaining four acute care hospital to be acquired in the third tranche in the middle of the year for a further A$470m.

It is envisaged that upon final settlement, expected in the third quarter of this year, the listed healthcare real estate investment trust will have interests in 11 hospitals, valued at no less than A$730m.

HCW is undertaking a fully underwritten A$320m capital raising to fund its share of the cost of the acquisition.

HMC is raising a total of A$155m in a fully underwritten institutional placement, and a security purchase plan.

The unlisted healthcare and life sciences trust is anticipated to hold a hospital portfolio of around A$1bn, including interest in the Healthscope private hospitals.

Half of the equity for the unlisted trust is expected to come from the listed HCW and the other 50% from third-party institutional investors.

HMC is understood to be negotiating with five potential domestic and global institutional investors that are currently undertaking due diligence.

Over time, the unlisted vehicle is looking to grow assets under management to around A$2bn.

A previous version of this story incorrectly said HMC Capital had agreed to buy a portfolio of private hospitals from Brookfield. Rather, HMC Capital is buying the portfolio from Medical Properties Trust.

Medical Properties Trust originally purchased the hospital portfolio from Brookfield after the Canadian investor took over Healthscope in 2019.

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