This is correct as I understand it, Healthscope would like more...

This is correct as I understand it, Healthscope would like more rent relief. And HMC are steadfast in their "No" answer. This is not new news.

The commentary in this AFR article speculates that Healthscope may wish to close some facilities but fails to highlight the nature of the lease agreement between Healthscope and HMC.

Taken from ASX Release March 25 2024 from HMC:

"In addition, HCW and UHF have the benefit of cross default rights across the Tranche 1 hospital portfolio
and separately the Tranche 2/3 hospital portfolio. If there is a default under one lease in the portfolio, there
is a default under all leases in the portfolio and HCW/UHF is able to exercise its rights as lessor of such
leased properties accordingly"

Also worth noting is that HCW only leases 4 of its properties to Healthscope, whereas another, unlisted, HMC managed fund ("UHF") leases 7. This is muddied somewhat by HCW also owning a stake in UHF (just under 50% from memory).

UberTrader - reading your comments, it is coming across as if you know the future with some certainty rather than it being merely your opinion and interpretation of the landscape. You seem obsessed and are performing a disservice to other forum members passing off your sometimes inaccurate comments as fact.

My view on this one is that there is some classic brinkmanship at play, nobody wants to pay a dollar more than they need to and everyone's out for maximum return.

But I find it very hard to envisage a future where HCW are the ones left holding the bag here, given:

1) The structure of the lease agreement and existing restructuring deal
2) The symbiotic nature between public and private health systems in Australia
3) The strong current financial position of health insurers in Australia
4) Not all players in this game are showing their cards, we are just meant to believe they are broke/not making money
5) All the macro is still there - ageing population, growing population, etc.
6) The pedigree of HMC (Di Pilla) activities over the years/decades would suggest he is quite comfortable operating in this sort of arena
7) HMC are capable of finding/creating another tenant, or even re-developing their properties in the event of a Brookfield default
8) Buy-back is continuing and indication has been given is that it will increase to close NTA gap

The "crisis" has most likely not fully peaked yet. Brookfield are (maybe) struggling to get returns via efficient business management so they are going around rattling the tin to see if they can beg and bully their way to profit.

I see this as the buying opportunity for those with the right resolve. This most likely sorts itself out without HMC adjustment, and soon HMC will be raising the rent per the restructured leasing agreement. And then you have the other 90% of the portfolio doing its thing.

Just my opinion.