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Highlights
HealthCo Healthcare and Wellness REIT shares soared 14.6% after striking a rent deferral agreement to support struggling hospital operator Healthscope.
The agreement ensures continued hospital operations while deferring 15% of rent payments until September 2025.
HealthCo and HMC Capital’s Unlisted Healthcare Fund have begun talks to sell or re-tenant Healthscope’s 11 private hospitals, acquired in 2023 for $1.2 billion.
Shares in HealthCo Healthcare and Wellness REIT (ASX:HCW) surged 14.6% to 94.5 cents in early morning trade after the fund announced a rent deferral agreement aimed at keeping hospital operator Healthscope afloat amid financial turmoil.
The announcement came as a relief to investors, with HealthCo shares rebounding sharply after falling more than 15% over the past year. The REIT, managed by HMC Capital, confirmed that it, along with its Unlisted Healthcare Fund (UHF), had entered into an agreement allowing Healthscope temporary rent relief, ensuring continuity of essential health services.
Under the terms of the deal, all rent arrears for March and April and 85% of May rent will be paid immediately. From June to August, HealthCo and UHF will receive 85% of monthly rents, with the remaining 15% deferred until September.
“The agreement is designed to support the uninterrupted operation of critical hospital services across Healthscope’s national footprint,” HealthCo said in a statement.
Receivership and Restructuring
The deal comes just days after Healthscope entered receivership, following its lenders' rejection of a proposed board-led restructure. In March, HealthCo and UHF had issued breach notices to Healthscope demanding full payment of overdue rent. The new arrangement suggests a more cooperative approach to stabilising operations during a period of uncertainty.
Hospital Sale Discussions Underway
In parallel, HealthCo and UHF have opened talks with receivers and Healthscope’s management regarding the sale of the 11 hospitals. According to HealthCo, they have already received formal expressions of interest from alternative Australian hospital operators interested in re-tenanting all 11 private facilities, potentially opening a path to continued operations under new management.
The hospitals, located across Australia, were acquired by HealthCo and UHF from New York-listed Medical Properties Trust in 2023 for $1.2 billion, forming a core part of the REIT’s healthcare property portfolio.






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