Vital Healthcare buys Aussie hospital
Vital Healthcare Property Trust has bought an Australian private hospital and healthcare centre for $A13m.
Vital Healthcare Property Trust has bought an Australian private hospital and healthcare centre for $A13m.
Mayo Private Hospital and Healthcare Centre, in Taree, New South Wales, was built in 1997 and is a 61-bed, two theatre private hospital, associated specialist consulting rooms and rehabilitation centre. The site has existing development approvals making provision for expansion to meet both current and future demand for healthcare services in the region.
Vital purchased the property for A$13 million, on a yield of approximately 10% after acquisition costs. The acquisition will be funded from the existing bank facility.
The purchase came as a result of an agreement whereby Healthe Care Australia acquired the operating business of the Mayo Healthcare Group and Vital contemporaneously acquired the land and buildings.
Healthe Care has entered into a new 20-year lease for the property, with annual reviews linked to inflation.
As a result of the acquisition, and after the recently announced lease extension at Epworth Brighton in Melbourne (from 2014 to 2019), Vital’s weighted average lease term will increase from approximately 11 to 11.5 years.
Vital Healthcare Property Trust is New Zealand's only NZSX listed specialist medical and healthcare property entity. The Trust has a total portfolio value of $526.8m, with 24 properties and 124 tenants in New Zealand and Australia, including Ascot Hospital in Auckland and Epworth Eastern Hospital in Box Hill, Melbourne.
NBR staff
Mon, 19 Dec 2011
Mon, 19 Dec 2011
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Vital Healthcare buys Aussie hospital
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