Wednesday 26th June 2013
|Text too small?|
NorthWest International Healthcare Properties Real Estate Investment Trust, the cornerstone shareholder in Vital Healthcare Property Trust, may lift its stake to as much as 24.99 percent from 20 percent by participating in its $39.2 million rights offer.
Vital plans to raise the funds through a one-for-10 pro rata renounceable rights issue at $1.275 a share, the manager of the medical and healthcare property investor said in a statement. The new units will be entitled to the final quarter distribution for the current financial year. Vital's shares rose 6.1 percent to $1.31 on the NZX today.
The equity capital will be used initially to reduce bank debt and will provide more flexibility to fund the company's capital spending plans, said Graeme Horsley, chairman of Vital's manager, Vital Healthcare Management.
"It was of paramount importance to the board that this offer be in a form that allows existing unitholders of Vital the opportunity to participate on an equitable basis and in priority to other prospective investors," he said.
In April NorthWest International, which owns Vital's manager, said it planned to lift its stake in the trust to just under a quarter, buying units on market at prices between $1.15 and $1.38. It plans to take up its full entitlement to new units to a maximum of 24.99 percent, according to today's statement. NorthWest is a Canadian entity whose principal is Paul Dalla Lana.
Vital plans to release a prospectus early next month and open the offer in late July.
Separately, Vital said the value of its property portfolio has risen by $9.9 million to $624.8 million, based on an unaudited valuation as at June 30.
Vital's loan to value ratio was 44.8 percent at Dec. 31, from 42.3 percent at the end of the last financial year. Total debt rose to $279 million from $245.8 million.
NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.
No comments yet
Vital Healthcare to spend A$29.9 million redeveloping and expanding NSW hospitals
Vital Healthcare posts 21 percent rise in profit, expects similar distributions in 2014
Vital Healthcare flags rights issue next month, suspends distribution reinvestment plan
Canada's NorthWest looks to boost stake in Vital Healthcare to 25 percent
Vital Healthcare 1H distributable profit rises 44 percent as building projects lift income
Vital Healthcare sells Point Chevalier property for $5.25M
Vital Healthcare portfolio value drops about 1.1 percent
Vital Healthcare pays A$12.3m for Sydney hospital
Vital Healthcare returns to 1H profit
Vital Healthcare pays A$13m for Mayo hospital in Australia