Vital Healthcare expands with purchases in Auckland, Perth
Vital buys a 30-bed private mental health hospital in Perth and a 31-bed private surgical hospital in Auckland .
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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%, the company says.
The Abbotsford Private Hospital in Perth has an initial 25-year lease term with Health Care Australia as the tenant, expanding the relationship that spans several properties.
It is Vital's second private hospital acquisition in Western Australia, which chief executive David Carr says "has the highest proportion of private health insurance in Australia". The deal settled on on Friday.
The Ormiston Hospital in Flat Bush 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 1000sq m of adjacent land to provide for future growth.
Vital last week reported an 87% 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 $A55 million, completed an $A18.3 million brownfields development at South Eastern Private Hospital and Dubbo Private Hospital and also has five other development projects, for about $A63 million, underway.
The units last traded at $2.075, and have gained 15% over the past 12 months.
(BusinessDesk)
Paul McBeth
Mon, 27 Feb 2017
Mon, 27 Feb 2017
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Vital Healthcare expands with purchases in Auckland, Perth
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