VHP
04/12/2014 17:27
ASSET
PRICE SENSITIVE
REL: 1727 HRS Vital Healthcare Property Trust
ASSET: VHP: Vital: New developments and strategic land acquisitions
Vital Healthcare Property Trust (Vital) is to commence a A$13.0m development
project at Maitland Private Hospital ('Maitland Private') and a A$1.4m
project at Lingard Private Hospital ('Lingard Private'). It also announced a
strategic property acquisition adjacent to Epworth Eastern in Melbourne to
support future expansion opportunities at the hospital.
Maitland Private Hospital - new psychiatric ward and expanded rehabilitation
services
Maitland Private is a 111 bed private hospital located approximately 30
kilometres north-west of Newcastle in NSW and specialises in surgery, acute
medical, post natal, psychiatric and rehabilitation services.
Maitland Private underwent a A$9.9m development in 2010-11 adding 24
inpatient surgical beds, a fourth operating theatre and dedicated
rehabilitation ward. In 2013 Vital undertook a further A$10.5m development
which added 25 mental health beds and a stand-alone medical centre.
Following the submission of a strong business case from the operator, Vital
has committed to a further A$13.0m third phase of development. The latest
development consists of constructing a new stand-alone 42 bed ward with
basement parking below. An additional parking deck will be added to the rear
of the property. Additional minor works include the installation of a new
lift. Practical completion is forecast to be November 2015.
David Carr, Chief Executive of the Manager said "This latest brownfield
development will bring the total investment at Maitland Private to around
A$33.4m over the last four years. The frequency of the projects reflects the
strong post completion performance of the hospital as each phase has
concluded. It's another example of the need to create further capacity to
meet the rising demand for healthcare services in the region."
"This latest project illustrates how the Manager's Australian based team, led
by the Australian Managing Director, Richard Roos continue to deliver solid
portfolio outcomes for investors. As part of the development we also secured
a five-year extension to the existing lease, which will now expire in
December 2037." said Mr Carr.
Lingard Private Hospital - new theatre and refurbishment
Lingard Private is a 101 bed acute hospital located four kilometres south of
the Newcastle CBD. With a major development being completed in 2013, Lingard
Private is now a leading private hospital in the region.
With strong demand for services resulting in the existing six theatres
operating at capacity, the hospital operator submitted a strong business case
for construction of a new operating theatre (total now 7) and a complete
refurbishment of an existing theatre to enable higher acuity procedures to be
undertaken. As a result, Vital committed to a further A$1.4m investment.
The total forecast construction period is four months due to complexity and
proximity to existing operating theatres. The project is forecast to be
complete by February 2015.
Epworth Eastern expansion - strategic property acquisition
Epworth Eastern is a 184 bed acute hospital located in Melbourne's eastern
suburb of Box Hill, operated by Epworth HealthCare. It was constructed by
Vital in 2005 and has undergone several minor internal reconfigurations over
the last 5 years. As at 30 June 2014 the Epworth Eastern campus, including
the hospital and adjacent medical centre, was valued at A$81.8m.
Due to capacity constraints, Vital and Epworth HealthCare are working
together on a master-plan to add further capacity at Epworth Eastern over
time.
To support the master-plan vision Vital has acquired additional properties
adjacent to Epworth Eastern for A$3.5m.
Mr Carr said "Strategically, the acquisition provides a logical opportunity
to expand the hospital over the medium term to support the growth in demand
being experienced at Epworth Eastern. We are excited about working
collaboratively with Epworth HealthCare as one of our largest tenants and a
leading not for profit private hospital operator in 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]
End CA:00258531 For:VHP Type:ASSET Time:2014-12-04 17:27:35
