HealthCo shares soar on Healthscope rent deferral, sale discussions
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More news: Shares in HealthCo Healthcare and Wellness REIT rocketed in early trading after the HMC Capital fund announced a rent deferral agreement to support troubled hospital operator Healthscope continue to run its services.
HealthCo shares were up 14.6% to 94.5 cents at 10:45am AEST, having retreated more than 15% over the last 12 months.
HealthCo also told investors it had opened talks regarding the sale of Healthscope's 11 private hospitals.
HealthCo REIT, HMC Capital agree Healthscope rent deferral
The news: HMC Capital's healthcare-focused real estate investment fund HealthCo and its Unlisted Healthcare Fund (UHF) have entered into a partial rent deferral agreement to support the continuation of Healthscope's hospital services.
The numbers: Under the new agreement, all outstanding rent arrears for March and April, and 85% of rent for May, will be paid immediately. HealthCo and UHF will receive 85% of the rent due between June and August. The remaining 15% deferred rent between May and August is due in September.
The context: The agreement supports the continuity of essential services at each of Healthscope's 11 private hospitals.
In March, HealthCo and UHF issued breach notices to the struggling hospital operator to pay all rent due for March.
HealthCo and UHF have also commenced discussions with Healthscope and its receivers regarding the Healthscope sale process. HealthCo and UHF said they received formal expressions of interest from alternative Australian hospital operators to re-tenant all 11 facilities.
Healthscope entered receivership this week after lenders refused to accept its offer to take board control and enable a solvent restructure.
HealthCo and UHF acquired the 11 freehold private hospitals leased to Healthscope from New York-listed Medical Properties Trust in 2023 for $1.2 billion.
What they said: "We are pleased that Healthscope and its Receivers have acknowledged the intent to keep all hospitals operating and that they are committed to ensuring that patients and hospital staff are prioritised through what we expect will now be an orderly transition," said HMC Capital's managing director for real estate, Sid Sharma.
"We look forward to discussing the Healthscope sale process with its receivers and working on an appropriate transition of services to new operators or owners in a timely manner."
The source: ASX
