Ann: ASSET: VHP: Vital acquires leading Australia

• Release Date: 13/09/12 18:24
• Summary: ASSET: VHP: Vital acquires leading Australian private hospital
• Price Sensitive: No
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VHP
13/09/2012 16:24
ASSET

REL: 1624 HRS Vital Healthcare Property Trust

ASSET: VHP: Vital acquires leading Australian private hospital

13 September 2012

Vital Healthcare Management Limited (the 'Manager'), the manager of Vital
Healthcare Property Trust ('Vital') today announced that it had
unconditionally acquired the property assets of SPORTSMEDoSA Private Hospital
and Clinics ('SPORTSMEDoSA') in Adelaide, South Australia.

Vital is acquiring the property assets (the land and buildings) of
SPORTSMEDoSA for A$29.2 million equating to an initial property yield of
approximately 9.1% before acquisition costs or approximately 8.6% after
acquisition costs, primarily Stamp Duty. The acquisition will be funded from
Vital's existing bank facility and settles on 3 December 2012.

SPORTSMEDoSA incorporates a state of the art dedicated orthopaedic facility
and is the largest of its type in Australia. It is located in the suburb of
Stepney approximately 4 kilometres north-east of Adelaide's CBD, in South
Australia.

In 2010 SPORTSMEDoSA was voted Australia's No.1 Private Hospital [1]. With 13
dedicated orthopaedic surgeons SPORTSMEDoSA employs over 300 staff treating
approximately 130,000 patients each year. The Hospital has 5 operating
theatres, 45 individual private rooms and a 4-bed high dependency unit.
Associated with the Hospital is a two-level Clinic, comprising 29 consulting
rooms, treatment rooms and a small procedure room.

Chief Executive of the Manager, David Carr noted that SPORTSMEDoSA will enter
into a new 20 year lease with fixed annual rent increases and periodic market
reviews. On settlement, Vital's portfolio weighted average lease term is
forecast to increase by six months to approximately 12 years.  There are also
medium term development opportunities on adjacent sites.

"We are delighted to have acquired such a quality investment with a world
class operator like SPORTSMEDoSA. The ability to structure an 'off-market'
acquisition further demonstrates Vital's execution capability and credibility
in the Australian healthcare property infrastructure market. The SPORTSMEDoSA
property acquisition is Vital's first acquisition in South Australia and
widens our presence to five of Australia's six states and provides additional
portfolio diversification benefits to the Trust" said Mr. Carr.

Chief Executive of SPORTSMEDoSA Hospital and Orthopaedics, Alan Morrison said
"We are excited about our new relationship with Vital. It was important to us
to find the right long term partner for our business and it was clear from
the research we undertook that Vital was the most credible. SPORTSMEDoSA now
has an excellent platform to execute its strategic plan as one of Australia's
leading orthopaedic surgical groups. We can now focus on our core business
whilst leveraging off Vital's management and development credentials and
experience when looking to the future. We look forward to working more
closely with the Vital team for many years to come."

In conjunction with other capital initiatives the forecast gearing of the
Trust is targeted to remain below 45%. Furthermore, the Board continues to
guide to a Net Distributable Income range of 7.7 to 7.9 cents per unit for
the 2013 financial year.

Note [1] 2010 Annual Medibank Private Member Hospital Experience Survey,
ahead of 144 Private Hospitals surveyed throughout Australia.

- 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]

About Vital Healthcare Property Trust
With a portfolio value of over NZ$567m, Vital Healthcare Property Trust
(NZSX: VHP) is New Zealand's largest listed investor in medical and
healthcare property infrastructure in Australasia. 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 124 tenants, in 25
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.
End CA:00227269 For:VHP    Type:ASSET      Time:2012-09-13 16:24:59