Hospital upgrades part of Vital plan
Vital Healthcare Property Trust is to buy two private Wellington hospitals for $68 million in a partnership deal with the hospitals’ current owner.
Vital, which already owns Lower Hutt’s Boulcott Hospital, said it would sign a conditional agreement with Acurity Health Group to redevelop and grow its portfolio.
Acurity owns Wakefield and Bowen hospitals in Wellington, and Royston Hospital in Hastings.
Vital said the work it was planning would probably cost about $100m, including ‘‘significant redevelopment’’ of Wakefield Hospital in Newtown.
The property company, which is listed on the New Zealand stock exchange, owns a $1.23 billion portfolio of health and aged-care properties throughout New Zealand and Australia.
Vital chief executive David Carr said the company would keep investors informed as the terms of the partnership ‘‘crystallised’’.
He said that with agreed lease terms of 30 years, a long-term partnership with Acurity was ‘‘a rare and unique opportunity’’ and aligned well with its diversification strategy.
The deal is subject to conditions including approval by the Overseas Investment Office.
Vital has been on an acquisition path recently, acquiring Ormiston Hospital, a 31-bed Southern Cross surgical hospital in Auckland’s Flat Bush, for $33m.
In an update to shareholders, Vital said net property income in the nine months to March was $69.8m, up from $50.1m a year earlier.
Profit was $83.45m, up from $69.35m in the prior period.