Sharechat Logo

Vital Healthcare expands footprint with hospital purchases in Auckland, Perth

Monday 27th February 2017

Text too small?

Vital Healthcare Property Trust has continued its acquisition spree since last year's capital raising, buying hospitals in Perth and Auckland. 

The healthcare property developer and investor today announced the purchases of a 30-bed private mental health hospital in Perth for A$20 million and a 31-bed private surgical hospital in Auckland for $33 million. The two purchases are expected to deliver an average yield of 6.65 percent, it said. 

The Abbotsford Private Hospital in Perth has an initial 25-year lease term with Healthe Care Australia as the tenant, expanding the relationship that spans several properties, and is Vital's second private hospital acquisition in Western Australia, which chief executive David Carr said "has the highest proportion of private health insurance in Australia". The deal settled on Feb. 24. 

The Ormiston Hospital in Flat Bush south of Auckland's CBD is the only private surgical hospital in the Counties Manukau District Health Board catchment. Vital's acquisition is expected to settle in May, and the property investor plans to buy a further 1,000 square metres of adjacent land to provide for future growth. 

Vital last week reported an 87 percent increase in first-half distributable earnings to $35.5 million as acquisitions and developments drove rental growth. The medical property investor raised $160 million last year, and since then has already bought two medical office buildings in Sydney and Melbourne for A$55 million, completed an A$18.3 million brownfields development at South Eastern Private Hospital and Dubbo Private Hospital and also has five other development projects, for about A$63 million, underway.

The units last traded at $2.075, and have gained 15 percent over the past 12 months.

  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 headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports