HMC Capital, as manager of Healthco Healthcare & Wellness REIT ((HCW)), has acquired 11 hospitals leased to Helathscope for -$1.2bn. The assets will be owned across both Healthco Healthcare & Wellness REIT and an unlisted healthcare fund.

As a result, Healthco Healthcare & Wellness REIT has raised $320m via a placement and entitlement issue. HMC Capital also raised $125m via a fully underwritten placement at $3.50 and a further $39m via a non-underwritten share purchase plan.

After the capital raising, Morgans valuation/target falls to $5.18 from $5.51. It's noted the REIT is building a track record of executing complex deals. Add.

Sector: Real Estate.

Target price is $5.18.Current Price is $4.24. Difference: $0.94 - (brackets indicate current price is over target). If HMC meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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