Vital acquires Hurstville Private Hospital, Sydney

Vitalhealthcareproperty.co.nz
30th April 2012

Vital acquires Hurstville Private Hospital, Sydney

Vital Healthcare Management Limited (the Manager), the manager of Vital Healthcare Property Trust (the Trust) today announced that it had acquired Hurstville Private Hospital, in the St George district of Sydney, Australia.

Hurstville Private Hospital is approximately 20km south-west of the Sydney CBD and comprises a 79-bed, four theatre private hospital and associated specialist consulting rooms. The property was developed in various stages, with the most recent works carried out in 2009.

The Trust will purchase the property for A$12.3 million, on an initial yield of approximately 10% after acquisition costs. The acquisition will be funded from the Trust’s existing bank facility.

The purchase was the result of an agreement whereby Healthe Care Australia Pty Ltd (Healthe Care) acquired the operating business of the Continuum Healthcare Group and the Trust acquired the land and buildings. The site has expansion capability and it is envisaged that the property will be developed further to meet future demand for healthcare services in the area.

Healthe Care will enter into a new 20 year lease for the property, with annual reviews linked to the Consumer Price Index. As a result of the acquisition the Trust’s weighted average lease term is forecast to increase from approximately 11.2 years to 11.5 years.

“We are pleased to have been able to again work closely with Healthe Care and structure an ‘off-market’ opportunity for the Trust’s first acquisition in Sydney” said David Carr, Chief Executive of the Manager.

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