The Bull

Thursday 16

August, 2018 8:20 PM



Canadian fund snaps up 10% of Healthscope

Canadian fund snaps up 10% of Healthscope

A listed Canadian healthcare property fund has acquired a significant stake in Australia's second largest private hospitals operator, Healthscope

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By AAP 08.05.2018 02:10 PM

Northwest Healthcare has acquired a 10 per cent interest in ASX-listed Healthscope at $2.39 per share, providing the Canadian giant access to the property portfolio of the country's second largest private hospital operator.

Toronto-based Northwest, with a major stake in the New Zealand-listed Vital Healthcare already boasts a portfolio of almost 150 medical buildings across Canada, Brazil, Germany, Australia and New Zealand.

In a statement on Tuesday, Northwest said it intends to pursue any potential Healthscope property acquisitions jointly with Vital, which already has the majority of its $1.67 billion healthcare portfolio in Australia.

The Canadian real estate trust on Tuesday notified the ASX that the Healthscope stake was bought using a derivative with Sydney's Deutsche Bank, which is also advising Northwest.

With 45 hospitals operating in large metro regions across Australia, Healthscope was already the target of a $2.36 per share takeover bid by BGH Capital and its superannuation fund backers.

In 2010 the US private equity firm The Carlyle Group and TPG beat off bids by Kohlberg Kravis Roberts and Tenet Healthcare for control of Heathscope with a $6.26 per share offer.

Meanwhile, Northwest has been on a concerted strategic expansion, with a total book value that rose by 40.7 per cent to $CA4.7 billion ($A4.86 billion) over the March quarter, while revenue also got a three per cent boost following the mid-2017 acquisition of Generation Healthcare REIT, the only ASX-listed healthcare real estate investment entity.

Shares in Healthscope were eight cents, or 3.3 per cent higher, to $2.48, at 1409 AEST.

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