Sharechat Logo

Vital Healthcare adds Acurity's Royston hospital to deal after getting OIO approval

Friday 1st December 2017

Text too small?

Vital Healthcare Property Trust has bought Acurity Health Group's Royston hospital for $54 million, having got Overseas Investment Office approval to acquire two other hospitals in the private operator's portfolio. 

Auckland-based Vital today said it got OIO approval to buy Acurity's Bowen and Wakefield hospitals in Wellington, which had been holding up the deal's settlement, and added the Hastings hospital with plans to expand the Royston hospital. The expanded deal commits Vital to spend up to $106.5 million developing the three hospitals, with Acurity signing up to 30-year leases on the sites. 

"Our agreement with Acurity to enter into a 30-year lease and commitment to an immediate development project at Royston affirms our combined vision to enhance Royston’s long-held reputation as a quality private hospital serving the Hawke’s Bay region," Vital chief executive David Carr said in a statement. 

Earlier this month, Vital chair Graeme Horsley told unitholders at the annual meeting he expected OIO approval in the coming months, and said Vital and Acurity are both keen to partner up on future real estate opportunities. Vital specialises in medical property investment, while Acurity operates private hospitals around the country. 

Vital units slipped 0.7 percent to $2.185 today, having gained 8.9 percent this year. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar bounces off four-year low; seen weaker
Vector urges regulatory change in low-interest-rate environment
Vector urges regulatory change in low-interest-rate environment
Govt moves against surprise Supreme Court 'black hole' tax ruling
Qantas CFO Race Strauss to join A2 Milk as CFO
Climate Committee seeks data, evidence for future carbon budgets
Spark's wobbly world cup start raises stakes for live-streaming - analysts
An algorithm dunnit: anatomy of Spark's mid-match surrender
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
Stanley-Tallwood liquidator cuts deal over KiwiBuild development

IRG See IRG research reports