I think it's pretty easy clear that HCW currently wants to get rid of Healthscope as a tenant due to their financial issues. That's in the best interest for unit holders as well as the party who'd eventually take over running the hospitals. If Healthscope is sold as a business to a new Owner without the current poor capital structure there would be no need to cancel the leases & find new tenants.
What HMC wants is a separate issue, they may not even put forward the best bid. HMC may only offer to buy some of the hospitals & a third party may wish to buy all of them.
If Brookfield is actually proactively looking to sell out they could provide temporary funding to Healthscope to remove the potential loss of the leases as part of the sale process. It makes no sense for Brookfield to allow the HCW/Healthscope leases to be cancelled.
I think we are potentially still a way off from getting to the point where new, potentially lower value leases are put in place. 3 month waiver on rents may suggest a time-scale for any sale process / cancellation of leases by HCW if Healthscope get up to date with the rent.
IMO the unit price already has the potentially materially lower priced leases factored in place. The recent price fall related more to removal of the guidance than any potential loss of rental income.
HCW Price at posting:
91.0¢ Sentiment: Buy Disclosure: Held
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