It had been a fair while drinks so far as listing ASX REITs goes for Home Consortium (ASX:HMC) but today’s debut didn’t disappoint.

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors.

Home Consortium first listed in its own right in late 2019 and in late 2020 listed the HomeCo Daily Needs REIT (ASX:HDN).

Today it listed the Healthcare and Wellness REIT (ASX:HCW) and it gained 14% on debut.

The IPO, which raised $650 million, was the second biggest of 2021 after Pexa (ASX:PXA).

Home Consortium Healthcare and Wellness REIT (ASX:HCW) share price chart



What’s in the portfolio?

The Healthcare and Wellness REIT has 27 properties with a fair value of $555 million.

50% of the properties are in Queensland while 29% are in NSW, 18% in Victoria and the remainder in WA.

It’s biggest tenants include GenesisCare, the Commonwealth and Queensland governments and G8 Education (ASX:GEM).

It is targeting 5 key subsectors which between them have an addressable market of $218 billion – life sciences & research, hospitals, aged care, primary Care & wellness and childcare.

Non-executive chair Joseph Carrozzi told shareholders in the product disclosure statement this was a positive space to be in right now.

“The model portfolio is expected to benefit from attractive mega trends underpinning long-term demand for healthcare and wellness properties,” he said.

“Ageing population, increased consumer health literacy and technological changes leading to improvements in detection and treatment of illnesses are contributing to increased utilisation of health services.

“In addition, increasing government expenditure is supportive of continued investment in health and wellness infrastructure.”

The REIT’s board members include former Liberal politician Kelly O’Dwyer and former Cochlear CEO Chris Roberts.

In FY22 it is targeting an annualised distribution yield of 4.5%.

Home Consortium, which retains a 20% stake in the new REIT, will manage the portfolio on a daily basis.

It listed in its own right in late 2019 at $3.35 per share but is now $7.24 per share – a 116% gain. The HomeCo Daily Needs REIT has also been a success since listing, debuting at $1.33 and currently sitting at $1.64 a gain of 23%.