Monday 19th December 2011 2 Comments
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Vital Healthcare Property Trust has paid A$13 million for the Mayo Private Hospital and Healthcare Centre in Taree, New South Wales, its manager said.
The yield after acquisition costs is about 10% and the purchase will be funded from the trust's existing bank facility, it said.
The property, which is about 170 kilometres north of Newcastle, has a 61 bed private hospital, two operating theatres, associated specialist consulting rooms and a rehabilitation centre.
“Built in 1997, it is a modern, highly functional hospital and healthcare centre,” the manager said. The site has existing development consents, allowing for expansion.
The purchase was made in association with Healthe Care Australia which has bought the Mayo operating business and signed a 20 year lease with annual CPI-linked reviews. The purchase will increase the trust's weighted average least term to about 11.5 years from 11 years.
“We are pleased to have been able to work closely with Healthe Care again on an opportunity that is beneficial to both parties, seeing another quality asset added to the trust's portfolio,” said David Carr, chief executive of Vital Healthcare Management.
Vital Healthcare already owns about eight properties leased to Healthe Care.
Earlier this month, ANZ Bank sold the trust's management contract and its 9 percent stake in the trust to Canada's NorthWest Value Partners for $11.5 million.
Vital Healthcare units closed at $1.05 on Friday. The units have risen from as low as $1.02 early this year but have dropped from $1.20 in early November when it was announced NorthWest had acquired a 10 percent stake.
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