RH Bophelo’s strategy is to create an integrated healthcare platform by leveraging off its Black Economic Empowerment (BEE) credentials to become the go-to provider of equity for healthcare projects. The strategy will be implemented in a three-pronged approach:
Consolidation of already operating assets
The Company will either individually purchase equity, or co-invest in healthcare assets that are already operating and have cash flows. The idea of a consolidated group appeals to independent groups, as they will benefit from increased economies of scale, have a stronger bargaining position with medical schemes, and thus, allow them to compete with the established operators.
Investment in brownfield projects
The Company will invest in brownfield hospital projects that are not more than a year from cash flow, with the opportunity to further develop and consolidate these projects to enhance value and support longer-term income and capital growth. RH Bophelo will insist that project sponsors secure licences and land, to ensure commitment and alignment of interests.
Other healthcare funds and related healthcare sub-sectors
The Company will invest in select healthcare funds and related healthcare sub-sectors which present an attractive opportunity, and in which RH Bophelo sees value and can generate returns to shareholders.
RH Bophelo will seek investment opportunities from the following sources:
- RH Bophelo’s project pipeline.
- Sponsors and advisors that independently approach the Company.
- Other funds or investment vehicles interested in co-investment.
- Disposal of healthcare assets from industry players.
- Participation in auctions.
RH Bophelo’s portfolio diversification
The Company will be transparent in its strategy, and clear to all stakeholders in terms of how and why each investment is made, ensuring that there is no inappropriate political, ideological, or personal interest in investments made.