VHP
27/09/2013 09:49
ASSET
REL: 0949 HRS Vital Healthcare Property Trust
ASSET: VHP: VHP announces two redevelopments and lease term extensions
Vital announces two redevelopments and lease term extensions
Vital Healthcare Management Limited (the 'Manager'), the manager of Vital
Healthcare Property Trust ('Vital') today announced it will commence a A$28
million redevelopment project at Hurstville Private Hospital ('Hurstville')
in Sydney and a smaller A$1.9 million capital project at Toronto Private
Hospital ('Toronto') in Toronto, New South Wales.
Hurstville is a 73 bed private hospital located approximately 16 kilometres
south-west of the Sydney CBD specialising in surgical services and
obstetrics. Vital acquired Hurstville in May 2012 with the intention at the
time of acquisition that a major extension and redevelopment of the hospital
would occur.
The A$28 million redevelopment will provide for additional acute clinical
services including increased operating capacity and patient accommodation and
a significant upgrade of the existing facilities as follows:
- Four new operating theatres (increasing the total to seven);
- An extended and modern day surgery facility, with improved patient flow;
- Three new inpatient wards taking the total number of beds to 114;
- Conversion of existing shared rooms to singles resulting in an increase in
private room accommodation from 14 to 72 beds;
- Consolidation of all current consulting suites;
- An oncology day patient service.
Chief Executive of the Manager, David Carr said "The development will involve
the construction of four new levels plus basement parking along with
refurbishment of existing patient wards and theatre suite support areas.
Importantly, the development will accommodate two major groups of surgeons
being Sydney Colorectal and Urology Sydney. Additionally, a nine chair day
oncology unit is being introduced to support referrals from the urologists
and colorectal surgeons".
The construction programme of 16 months provides for an estimated completion
date of January 2015. The forecast return is in line with recent
redevelopment yields achieved by Vital.
Refer to the Appendix for an architect's impression of the completed
development and location map of Hurstville Private Hospital.
Toronto Private Hospital - new mental health unit established
Toronto is a 79 bed private hospital and is approximately 20 kilometres from
Newcastle in NSW. The hospital is a three-level facility specialising in
general surgical, medical and rehabilitation services.
The Toronto capital project involves consolidating two rehabilitation wards
into a single ward and the establishment of a new 26 bed mental health unit.
The project will add seven new beds taking the total number of beds to 86 and
has a budget of A$1.9 million. The forecast construction programme of three
months provides for an estimated completion date of November 2013.
Milestones achieved with extended lease terms secured
In recognition of Vital's on-going strategic investment into the above
developments, and the recently completed projects at Lingard Private Hospital
in Newcastle and South Eastern Private Hospital in Melbourne, all four leases
will be varied to include 10 year lease term extensions, effective
immediately.
Vital's forecast weighted average lease term to expiry (WALT) will increase
from 11.5 years to 12.1 years1 as a result of the lease extensions.
Mr Carr said "The above developments will continue to support Vital's
strategy of creating additional capacity to meet the rising demand for
healthcare services. We are again pleased to partner with Healthe Care to
develop and enhance the quality and value of these hospitals in what has been
a very successful strategy for both parties over recent years."
- ENDS -
ENQUIRIES
David Carr, Chief Executive Officer
Vital Healthcare Management Ltd, Telephone 09 973 7301, Email
[email protected]
Stuart Harrison, Chief Financial Officer
Vital Healthcare Management Ltd, Telephone 09 973 7302, Email
[email protected]
Enclosed: Appendix showing Architect's impression of the completed
redevelopment and location map of Hurstville Private Hospital.
1. Forecast as at 31 December 2013
About Vital Healthcare Property Trust
With a portfolio value of over NZ$618m, Vital Healthcare Property Trust
(NZSX: VHP) is Australasia's largest listed investor in medical and
healthcare property infrastructure. With an expert understanding of the needs
of healthcare tenants on both sides of the Tasman, we actively select,
develop and manage quality properties to meet the growing demand for medical
and healthcare services. Our 108 tenants, in 24 properties, provide essential
healthcare services to thousands of patients while also undertaking research
and providing support services that will make a difference to many more lives
in the future.
The Manager of Vital Healthcare Property Trust, Vital Healthcare Management
Limited is owned by NorthWest Value Partners Inc., a private real estate
investment firm based in Canada with healthcare real estate interests in
Canada, Australia, New Zealand, Brazil and Germany.
vitalhealthcareproperty.co.nz
End CA:00241672 For:VHP Type:ASSET Time:2013-09-27 09:49:38
