Vital Healthcare Property Trust, New Zealand's largest listed medical and healthcare property investor, has bought a 31-bed psychiatric hospital in Perth, Western Australia, for A$13.5 million, as it looks to beef up its exposure to the resources-driven state economy.
The property investor's manager, Vital Healthcare Management, said it has unconditionally purchased the Marian Centre hospital in Subiaco, Perth, which offers inpatient, outpatient services and therapy programmes. The purchase price provides an initial yield of about 8.5 percent, and will be funded from Vital's existing bank facility, which it renewed last month with an extra A$100 million, it said. Once the deal settles, Vital will embark on a A$10.8 million redevelopment over the coming year to more than double bed numbers to 66.
"This acquisition aligns perfectly with our strategy to acquire healthcare assets in established medical precincts and add further value by creatign capacity to meet patient and operator demand," chief executive David Carr said in a statement. "We see this transaction as a catalyst for further opportunities in the Western Australian market, wtih Vital now having a diversified presence in all six Australian states."
Units in the trust were unchanged at $1.35, and have gained 5.5 percent this year, outpacing the 3.4 percent gain in the NZX All Index over the same period. The stock is rated a 'hold' by four analyst recommendations compiled by Reuters, with a median price target of $1.39.
The hospital's operator will be Healthe Care, which has entered into a new 20-year lease for the property, with annual CPI reviews and market reviews every 10 years.
