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 $13.5 million.
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 programs.
The purchase price provides an initial yield of about 8.5 per cent, and will be funded from Vital’s existing bank facility, which it renewed in July with an extra $100 million, it said. Once the deal settles, Vital will embark on 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 creating capacity to meet patient and operator demand,” chief executive David Carr said in a statement on Monday. “We see this transaction as a catalyst for further opportunities in the Western Australian market, with Vital now having a diversified presence in all six Australian states.” Units in the trust were unchanged at $NZ1.35, and have gained 5.5 per cent in 2014, outpacing the 3.4 per cent gain in the NZX All Index over the same period. 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.