HealthCo announces acquisitions and investments which increase initial seed asset portfolio to approximately $1.0 billion (as-complete basis)

Camden Integrated Hospital Anchored Health Precinct Development

The agreed acquisition of a 5 hectare site across three parcels of land in Camden, NSW will unlock a significant development pipeline for HealthCo in Australia’s fastest growing local government area (LGA)4.

HealthCo has agreed to partner with Acurio to initially develop a 78 bed integrated private hospital5 (stage 1) which will be leased to Acurio under a 15 year lease. In addition, the joint venture will develop an integrated health and innovation precinct (stages 2 & 3) with a potential end value of $500+ million. The parcels of land have State Significant Development Approval for a mixed-use medical campus including approval for a large scale general hospital and biomedical facility.

For stage 1 of the project, HomeCo has agreed terms to fund at least $70 million of capex and construction is expected to commence by October 2021.

Camden presents a significant long term investment opportunity for HealthCo and is underpinned by attractive growth demographics including:

▪ Population growth: Camden is forecast to be among the fastest population growth LGAs in Australia, with forecast growth of 4.5% per annum from 2021-20416

▪ Ageing population: the over 65 age group in South-West Sydney is expected to increase 74% by 2031, and 92% in the over 85 age group7.

▪ High private health insurance coverage: Camden has 58% private health insurance coverage vs NSW average of 46% and surrounding LGA average of 30%8

▪ Undersupply of private hospital beds: preliminary needs analysis estimates a current deficit of ~500 overnight and ~150 same day private beds in Sydney’s South West and Outer South West vs. available supply. This deficit is expected to grow without further investment in capacity in the region9

HomeCo Managing Director and Chief Executive Officer David Di Pilla said:

“Today’s acquisition update further demonstrates our ability to source high quality healthcare assets which align to the model portfolio strategy for HealthCo. We are pleased to establish strategic partnerships with both GenesisCare and Acurio. In particular, we look forward to the development at Camden as part of our significant broader involvement in the Western Sydney growth corridor.”

HealthCo Capital Raising Update

▪ HomeCo’s previously proposed strategy to establish ASX-Listed HealthCo and Unlisted HealthCo by calendar year end remains on-track.

▪ The IPO process for ASX-Listed HealthCo which will look to raise at least $500 million of equity has commenced and is on-track for a listing in 1H FY22

▪ The Unlisted HealthCo Fund is also on-track for establishment with a target equity raise of $1.0 billion and initial first close of at least $500 million by calendar year end.