ING Medical weighs bid for Australian health clinic investor

ING Medical Properties Trust said it is conducting due diligence on an Australian health clinic investor that would almost double the size of its property portfolio.

ING Medical, which is managed by a unit of ANZ National Bank, is running its eye over Essential Healthcare Trust, which owns A$152 million of hospital assets according to its 2009 annual report and is managed by Orchard Capital Investments

Orchard reaped A$1.95 million in management fees from Essential in 2009, when changes to fair value of properties and losses on derivative products resulted in a A$2.98 million loss. Fees in 2008 were A$1.92 million.

Property rentals rose to A$19.7 million in the year ended June 30, 2009, from A$17.5 million a year earlier.

Orchard has granted ING Medical an exclusive period “to undertake due diligence and negotiate potential transaction terms which may or may not lead to a transaction,” it said in a statement today.

Units of ING Medical fell 0.8% to $1.27. The trust currently owns 14 properties valued at $296 million, including Epworth Eastern Hospital in Melbourne.

Businesswire.co.nz

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