The development site will be leased next year to the Epworth Foundation as part of the expansion of Epworth Eastern Hospital. Epworth Healthcare is Victoria's largest not-for-profit hospital operator.
Epworth Eastern Hospital's expansion is well under way, building a new 14-level tower for seven levels of specialist consulting facilities, five operating theatres and an emergency department. That yet-to-be-completed expanded building has been 80 per cent leased to Epworth Healthcare.
Once finished, Vital expects that hospital to be worth around A$380m, it said, and the target date for completion is later next year.
The trust also announced that other property deals here and in Australia had been settled.
Its purchase of Tauranga's Grace Hospital and sale of three regional hospitals in Australia
for $87.4m had settled, it said. Last month, it also announced it was selling Mayo Private Hospital in Taree, Dubbo Private Hospital and North West Private Hospital in Tasmania's Burnie.
Vital has a property portfolio valued at $2.2b of which 77 per cent of assets are in Australia and 23 per cent in this country.
Most of that portfolio or 82 per cent are hospitals, 12 per cent are outpatient or medical office buildings and 6 per cent are aged care properties.
Demand for healthcare in the Box Hill is rising, the business told unitholders at its annual meeting.
The trust mounted a major equity raise in October and last month, getting $157.5m primarily from existing unitholders.
Vital says it is Australasia's only listed hospital, healthcare and medical property specialist.
In its outlook, Vital said: "Healthcare property remains a defensive asset class underpinned by growing demand, high levels of government support in Australia and New Zealand and growing institutional interest. Vital is well-positioned to take advantage of opportunities in this sector to continue to provide attractive risk-adjusted returns for unitholders."
While other companies have been hit from devaluations due to covid, Vital said it made a $45.7m net revaluation gain.
It has about $240m of development work on, spending about $100m on Wellington's Wakefield Hospital and the $140m at the Epworth Eastern Hospital.
Vital's share price has risen strongly lately, from $2.05 in March when the national lockdown was called, to around $3.20 yesterday.
