Vital Healthcare Property Trust buys Queensland rehab hospital

The private rehabilitation hospital leased to Healthe Care Australia has future brownfield potential.

Vital Healthcare Property Trust has bought Eden Rehabilitation Hospital in Cooroy in Queensland, Australia, for $A23.8 million as part of its diversification strategy.

Eden is a private rehabilitation hospital leased to Healthe Care Australia and has future brownfield potential, Vital Healthcare chief executive David Carr said in a release to the stock exchange. Vital has agreed to a new 20-year lease with Healthe Care, Australia's third-largest corporate private hospital operator and Pan-Asian healthcare services group.

The purchase of the 48-bed private inpatient rehabilitation hospital and medical centre "further reinforces Vital's commitment to its scale and diversification strategy while working alongside our tenant partners to support their own long-term growth aspirations," said Carr.

Eden has provided rehabilitation and medical care to Sunshine Coast residents for more than 15 years. The population of the Sunshine Coast is expected to grow more than the national average over the next 10 years and Eden is the only sub-acute standalone private rehabilitation hospital between Brisbane and Cairns.

Healthe Care and Vital expect to collaborate to deliver a brownfield development at Eden to meet the forecast increase in demand, said Carr.

The units last traded at $2.19 and have gained 8.4% this year.