Vital Healthcare extends buying spree

Wednesday 05 April 2017 10:34 AM

Vital Healthcare extends buying spree with two Australian facilities worth A$27.6M

By Jonathan Underhill

April 5 (BusinessDesk) - Vital Healthcare Property Trust has acquired an aged-care facility and a hospital in Australia for A$27.6 million, extending the buying spree it embarked on since raising $160 million in a rights offer last July.

The company acquired the Grafton Aged Care facility in northern New South Wales with aged care partner, Hall & Prior, gaining a total of 83 beds in 43 rooms and two adjacent residential properties that can be used for expansion. Grafton was bought on an initial 20-year lease with Hall & Prior in a deal that settled on March 31, it said.

Vital said it has also simplified the ownership of Melbourne's Epworth Eastern Hospital with a six-year lease extension to 25 years. Vital built the hospital in 2005. Epworth is an Australian not-for-profit hospital operator based in the state of Victoria. That transaction also settled in March.

Separately the company said it settled the $33 million purchase of Ormiston Hospital in Flat Bush south of Auckland's CBD, one of two acquisitions announced in February along with the Abbotsford Private Hospital, a 30-bed private mental health hospital in Perth for A$20 million.

The latest acquisitions add to two medical office buildings in Sydney and Melbourne purchased for A$55 million.

The units last traded at $2.06 and have gained about 2 percent this year.

(BusinessDesk)

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