Vital Healthcare pays A$24M for Melbourne medical centre

Monday 21st November 2016

Vital Healthcare Property Trust, the hospital and healthcare property developer, paid A$24.4 million for a majority interest in a medical centre in Melbourne, Australia, and spent A$10 million acquiring sites to enable future expansion.

The Auckland-based trust acquired the controlling interest in the four-level Ekera Medical Centre in Box Hill in Melbourne, with a small number of individual strata units remaining in the private ownership of consultants, surgeons and doctors who practice from the units, it said in a statement. It also acquired five sites adjacent to some of its other facilities in Australia to allow for future expansion, it said.

Vital Healthcare raised $160 million in July to help fund its growth strategy, and it says the medical centre in Box Hill is closely to a recently redeveloped 400-bed, 10-theatre public hospital and its own Epworth Eastern Hospital with 223 beds and 10 theatres.

Ekera's major tenant Imaging Associates accounts for about 40 percent of the rental income, with other tenants including Sonic Healthcare, Monash IVF and Sportsmed Biologic. The building has a weighted average lease term to expiry of 4.2 years and reflects a blended yield of 6.75 percent, Vital said.

Meanwhile, two of the additional sites it bought are in Victoria, two in New South Wales and one in Western Australia.

Vital's units slipped 0.5 percent to $2.04, having gained 11 percent this year.

BusinessDesk.co.nz

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