Vital Healthcare buys Sportsmed•SA property for $A29.7m
It houses an orthopaedic hospital which is the largest of its kind in Australia.
BUSINESSDESK: Vital Healthcare Property Trust, which invests in health clinics and other medical facilities, says it has acquired the land and buildings of Adelaide-based Sportsmed•SA for $A29.7 million, extending its footprint across the Tasman.
The property houses an orthopaedic hospital which is the largest of its kind in Australia, the trust’s manager Vital Healthcare Management says. It offers an initial property yield of about 9.1%, or about 8.6% after acquisition costs such as stamp duty.
Vital will use existing bank facilities to fund the deal, which is to settle on December 3.
The hospital treats 130,000 patients a year and has five operating theatres and a clinic.
Vital opted against internalising its management contract when ANZ Bank instead sold the contract and its 9% stake to Canada's NorthWest Value Partners for $11.5 million. In the latest year, the manager's ordinary fees rose to $4.1 million from $3.2 million, reflecting new acquisitions.
“The ability to structure an ‘off-market’ acquisition further demonstrates Vital’s execution capability and credibility in the Australian healthcare property infrastructure market,” says David Carr, chief executive of the management company.
The units of the trust fell 1.2% to $1.225 on the NZX today and have gained 11% this year.
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Vital Healthcare buys Sportsmed•SA property for $A29.7m
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