Vital Healthcare buys Adelaide-based Sportsmed•SA property for A$29.7M
Sept. 13 (BusinessDesk) - Vital Healthcare Property Trust, which invests in health clinics and other medical facilities, said it has acquired the land and buildings of Adelaide-based Sportsmed•SA for A$29.7 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 said in a statement. 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 Dec. 3.
The hospital treats 130,000 patients a year, has five operating theatres and a clinic.
Vital opted against internalising its management contract when ANZ Bank instead sold the contract and its 9 percent 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,” said David Carr, chief executive of the management company.
The units of the trust fell 1.2 percent to $1.225 on the NZX today and have gained 11 percent this year.