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Vital Healthcare to spend A$29.9 million redeveloping and expanding NSW hospitals

Friday 27th September 2013

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Vital Healthcare Property Trust, New Zealand's largest listed medical and healthcare property investor, plans to spend A$28 million to redevelop a hospital in Sydney and A$1.9 million to extend a hospital near Newcastle, to meet rising demand for healthcare services.

Vital Healthcare plans to add new operating theatres, extend day surgery facilities, add new inpatient wards, convert shared rooms to singles, consolidate consulting suites and develop an oncology day patient service at its Hurstville Private Hospital in Sydney, the Auckland-based company said in a statement.

The project is expected to take 16 months and be completed in January 2015. The forecast return is in line with its other recent redevelopment yields, Vital said, without providing details.

A smaller redevelopment programme at the Toronto Private Hospital in Toronto, New South Wales, is expected to be completed in November after three months of construction. That project involves consolidating two rehabilitation wards into a single ward and establishing a new 26-bed mental health unit, the company said.

Vital Healthcare is extending leases on the hospitals, and two others that have recently undergone redevelopment, taking its weighted average lease term to 12.1 years from 11.5 years.

Units of Vital Healthcare slipped 0.4 percent to $1.36.

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