Launched in August 2019, RH 12J is an accredited venture capital company (VCC) that gives investors access to South Africa’s lucrative healthcare sector. It is a healthcare investment vehicle that invests in private hospitals across South Africa, and the related strategic value chain, on behalf of its investors. RH 12J has a pipeline of new hospitals in attractive locations and will capitalise on existing relationships with RH partners, which include RH Managers, RH Bophelo and the existing association, which boasts access to over 30 hospitals in South Africa. Individuals, trusts and companies can invest in RH 12J.
The investment vehicle gives investors an opportunity to play a role in transforming healthcare in South Africa, thereby improving the lives of many. As noted by RHB’s transaction executive, Vuyokazi Nomvalo, “RH 12 J provides a platform for all South Africans to take part in a growing healthcare company by investing capital to purchase infrastructure.” The investments will enable us to expand our network of hospitals and reach other communities that are in need of quality healthcare.
With the government working towards redressing the state of healthcare in South Africa, both access and infrastructure, through the establishment of the National Health Insurance Bill, RH 12J is an example of how the private sector can buttress the government’s efforts to improve the healthcare sector. As articulated by RHB’s CFO, Dion Mhlaba, “The RH 12J aligns with the government’s outlook on the country’s healthcare and creates an opportunity for everyone to rally behind the healthcare reforms through investments in new healthcare infrastructure.”
RH 12J investment highlights include the following:
- A total subscription of R500m at R400 000 per person.
- Investors can enjoy returns with a targeted IRR return of 18% per project.
- Investors get tax incentives.
- A pre-determined exit strategy and providing liquidity for investors.
- Competitive management fees of 2% per annum.
- Opportunity to further invest in the healthcare value chain, energy, equipment, retirement home development.
The RH 12J Portfolio
The purpose of RH 12J is to “make hospitals accessible to a broader population; we are developing hospitals in the rural and peri-urban areas,” says Vuyokazi.
Below are the current and future hospitals in the RH 12J investment portfolio:
Escourt Private Hospital (Kwa-Zulu Natal)
This facility will be a 70-bed private hospital. The investment is valued at R40m with an initial return on investment of 19%.
East London Private Hospital (Eastern Cape)
This facility will be a 150-bed private hospital. The investment is valued at R50m with an initial return on investment of 20%.
Atteridgeville Private Hospital (Gauteng)
This facility will be a 100-bed private hospital. The investment is valued at R60m with an initial return on investment of 19%.
Cosmo City Private Hospital (Gauteng)
This facility will be an 80-bed private hospital. The investment is valued at R40m with an initial return on investment of 21%.
Blue Downs Private Hospital (Western Cape)
This facility will be a 50-bed private hospital. The investment is valued at R30m with an initial return on investment of 19%.
Burgersfort Private Hospital (Limpopo)
This facility will be a 125-bed private hospital. The investment is valued at R60m with an initial return on investment of 22%.
Medleb Private Hospital (Limpopo)
This facility will be a 50-bed private hospital. The investment is valued at R30m with an initial return on investment of 16%.
With an investment term of six years, RH 12J will be managed by RH Titan Management Company (“Manco”), a business accredited by FSCA.
An investment in healthcare is an investment in the transformation of the country. For more information on how you can join us in improving healthcare infrastructure in South Africa, visit https://rh12j.co.za/ or call us on 010-007-2171.