Vital leases Gold Coast hospital for $2.4m a year

Wednesday 22nd April 2015

Vital Healthcare Property Trust has leased its Gold Coast hospital to Ramsay Health Care, an international hospital provider, for the next 21 years.

The Auckland based property trust has leased its Allamanda Private Hospital to the Australian stock exchange listed hospital operator, with annual rent starting at A$2.4 million, beginning in November 2016, Vital said in a statement. Ramsay operates 212 hospitals and day surgeries across Australia, France, the UK, Indonesia and Malaysia.

The property trust is investing in private hospital facilities in New Zealand and Australia as it expects demand to increase from an ageing population, a rise in chronic disease and higher patient expectations. About 47 percent of Australians have private health care cover for hospitals, compared to about 30 percent of New Zealanders.

In February, Vital reported a 21 percent drop in first half distributable income to $16.3 million as it faced a bigger tax bill relating to a lease transaction, having benefited from a tax credit a year earlier.

Shares of Vital rose 1.2 percent to $1.695. Shares of Ramsay last traded at A$64.90 on the ASX, and has a market capitalisation of A$13.1 billion.

BusinessDesk.co.nz

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