VHP
22/04/2015 09:51
GENERAL
PRICE SENSITIVE
REL: 0951 HRS Vital Healthcare Property Trust
GENERAL: VHP: Vital and Ramsay Health Care partnership at Allamanda
Vital and Ramsay Health Care establish long term partnership at Allamanda
Private Hospital
Vital Healthcare Management Limited (the 'Manager'), the manager of Vital
Healthcare Property Trust ('Vital') is pleased to announce that it has an
unconditional agreement with Ramsay Health Care Limited (ASX: RHC) ('Ramsay')
for a new 21.3 year net lease of 100% of Allamanda Private Hospital in
Southport, Gold Coast, Australia.
David Carr, Chief Executive of the Manager said "The lease to Ramsay, a
leading global hospital operator is a significant milestone for Vital. To
secure a long-term lease with one of the world's largest private hospital
operators is a fantastic outcome. Following on from our recent success
entering into a new 30 year lease with Mercy Ascot in Auckland, the Vital
team now has an established and proven track record in proactively managing
and mitigating end of term lease expiry risk."
Ramsay operates 212 hospitals and day surgery facilities across Australia,
France, the United Kingdom, Indonesia and Malaysia.
David Carr said "The repositioning of Allamanda was a key asset management
focus in 2015. Resolving the expiry some two and a half years ahead of time
is an excellent outcome. Over the next 10 years Vital's average lease expiry
profile is only 2.2% of portfolio rent per annum, with our largest single
tenant lease expiry now capped at 2.4% over the same period. The Australian
Vital Management team led by Richard Roos (Managing Director) and Mark Norman
(Fund Manager) have done an exceptional job in repositioning Allamanda,
further adding to Vital's market capability and credibility."
The initial minimum commencement rental will be A$2.4m per annum, with the
final commencement rent determined by as yet to be agreed capital works to
ensure that Allamanda meets Ramsay's long-term requirements. Excluding
Vital's responsibility for lessor's works, which is capped at A$2.0m, the
lessee capital works will be rentalised on completion and may be staged.
The new 21.3 year term is expected to commence on 1 November 2016 providing
back to back contractual lease certainty. The lease also includes annual CPI
reviews and periodic reviews to market.
- 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$630m, Vital Healthcare Property Trust
(NZSX: VHP) is Australasia's largest listed investor in healthcare real
estate. Tenants include hospital operators and healthcare practitioners who
deliver a wide range of medical and healthcare related services. Vital
currently has a portfolio of 25 properties with 75% by value located in
Australia and the balance in New Zealand. Vital aims to deliver a low-risk,
medium-return investment profile for unitholders. The Manager of Vital
Healthcare Property Trust is Vital Healthcare Management Limited.
vitalhealthcareproperty.co.nz
End CA:00263396 For:VHP Type:GENERAL Time:2015-04-22 09:51:49
