Hammes Partners Raises $445M To Invest Across Strong Healthcare Cash Flow Assets
Hammes Partners has raised $445 million, which it plans to deploy across healthcare facilities. The equity comes courtesy of the Milwaukee-based firm's core-plus healthcare real estate platform, drawing attraction from institutional investors. The funding amount exceeded Hammes' initial target by almost $100 million.
The company, with the capital raised, said in a statement that it will target facilities that "have resilient and predictable cash flows." In deploying its strategy, Hammes plans on leveraging its 25 years of experience in healthcare real estate investments.
"We are grateful for the strong support from new investors as well as returning investors that remain confident in our investment strategy and track record, Patrick Hammes, managing principal of the firm, said.
"We believe this platform will enable us to provide our investors with exposure to quality, highly stabilized U.S. healthcare real estate assets while supporting the facility objectives of our healthcare provider partners nationwide."
According to the company, it has managed over 57 million square feet of acute care and ambulatory developments, while creating more than $23 billion for health systems and hospitals throughout the U.S.
Looking ahead, Hammes said it plans to "scale" its core-plus platform.
Serving as the legal counsel for Hammes' equity raising was Alston & Bird, LLP.
While NIH and Medicaid cuts have created headwinds for healthcare, Rahul Chhajed, SVP and senior director of healthcare at Matthews Real Estate Investment Services, said that transaction velocities in the sector "have increased substantially" in the last year. The momentum is coming from a range of groups, including retail investors, 1031 exchange buyers and institutional funds.
Source: GlobeSt/ALM