HealthCo Healthcare & Wellness REIT announced that it has entered into arrangements alongside a newly established Unlisted Fund ("Unlisted Fund") to acquire from Medical Properties Trust Inc., a 100% interest in 11 private hospitals (the "Healthscope Hospital Portfolio") leased to Healthscope for a purchase price of $1,200 million. Key lease terms amended which materially improve the tenant covenant and rental growth. Attractive 5.8% implied NOI yield with a forecast unlevered IRR of >9% 3. Transf ormational acquisition which signif icantly improves the income security, scale & quality of HCW's portf olio, underpinned by the 16-year WALE4, absolute net lease5 and CPI-linked escalations 6, New Unlisted Fund provides complementary funding partner for HCW to unlock ~$1 billion of accretive development opportunities 7 post acquisition with a target ungeared ROIC of 6-8%.

HCW acquiring a 100% interest in 4 hospitals for $256 million (Tranche 1); and a ~50% equity interest in the Unlisted Fund, which will acquire 7 hospitals for $944 million (Tranches 2 & 3) (HCW Acquisition), $320 million underwritten Equity Raising (Equity Raising) comprising a $89 million institutional placement (Placement) and a $231 million 1 for 1.90 pro rata Accelerated Non-Renounceable Entitlement Offer (Entitlement Offer) Strong support from HMC by committing to take up to $123 million in the Entitlement Offer (including $75 million of sub-underwriting), an HMC funded bonus unit (Bonus Unit) and an improved cost structure for HCW Attractive financial returns driving 7% FFO accretion on pro forma forecast Fourth Quarter FY23 FFO of 7.5cpu, with pro form a look through gearing maintained at midpoint of 30-40% target range9 FY23 DPU guidance upgraded from 7.5 to 7.6cpu, implying a 5.9% 10 yield on Fourth Quarter FY23 annualised DPU Increased free float and liquidity. HCW expected to be eligible for future S&P/ASX300 index inclusion.