Vital Healthcare goes on $120m acquisition trail in Australia, New Zealand

One of the four purchases is near Auckland City Hospital. Photo / Jason Oxenham

The $2.3 billion medical and hospital landlord Vital Healthcare has announced four new property purchases here and in Australia worth more than $120 million.

The NZX listed business is buying an A$82.7m Epworth Camberwell mental health and specialist rehabilitation hospital in Melbourne.

It has also agreed to buy two Queensland properties and one near Auckland City Hospital at Grafton.

All up, the business is spending $120m plus costs on the four deals.

The new Melbourne property is a four-level, 147-bed hospital on nearly 1ha of land 9km from the city's CBD and has an existing tenant in place on a 20-year least, the company said.

The business has bought a Brisbane property for A$11.4m, land on the Gold Coast for A$9.4m and 61-71 Park Rd, Grafton in Auckland for $7.25m.

In October, Vital's manager announced a $150m capital raising for expansion including three big projects in Australia.

NorthWest Healthcare Properties Management said the offer would be via a $125m underwritten placement of new units and a $25m unit purchase plan.

The money would allow Vital to expand and grow earnings, giving further details about three large property projects which are all in Australia.

Around $100m of brownfield developments are planned and either announced today or in the next few months, it said.

Vital also said today Bernard Crotty would retire from NorthWest's board and be replaced by Australian Craig Mitchell.