VHP
29/10/2014 16:48
GENERAL
REL: 1648 HRS Vital Healthcare Property Trust
GENERAL: VHP: Vital announces new developments and asset sale
Vital Healthcare Management Limited (the Manager), the manager of Vital
Healthcare Property Trust (Vital) today announces it will commence a A$9.5m
redevelopment project at Belmont Private Hospital ('Belmont') in Brisbane and
a A$6.0m project at Hurstville Private Hospital ('Hurstville') in Sydney.
Belmont Private Hospital - new 30 bed extension
Belmont is a 120 bed private hospital located in Carina Heights (Queensland)
and is approximately 12 kilometres east of the Brisbane CBD. It specialises
in the management of acute psychiatric disorders. Vital acquired the hospital
as part of its 2010 portfolio acquisition with the potential for major
value-add redevelopment to occur.
In 2011 and 2012 the hospital underwent a A$12.2 million redevelopment adding
30 inpatient beds, additional consulting suites and car parking. Post
development, Belmont has continued to experience very high occupancy and
rising demand for the mental health services provided by Healthe Care.
To help meet this demand Vital has commenced a A$9.5m redevelopment to add 30
new beds, four new consulting suites, a dedicated day program therapy suite
inclusive of six therapy group rooms and 45 additional car parks. A
five-year extension to the current lease term has also been secured as part
of the development, extending the Belmont lease term to 20.5 years on
completion. The construction programme is approximately 12 months and
forecast for completion September 2015.
Chief Executive of the Manager, David Carr said "The fact that this latest
redevelopment comes so soon after the completion of the previous one
illustrates the strong fundamental drivers in healthcare and our positive
long term outlook for the sector."
Hurstville Private Hospital - new angiography suites, coronary care and
intensive care units
Hurstville is a 73 bed private hospital located approximately 16 kilometres
south-west of the Sydney CBD specialising in surgical services and
obstetrics. The hospital is currently undergoing a A$28m redevelopment which
will add an additional four theatres (to seven), an expanded and modernised
day surgery and three new patient wards. The project is approximately 40%
complete with final completion forecast for May 2015.
Due to a large unmet demand in cardiology services in Hurstville's catchment
area, Vital will also now undertake a further stage of development consisting
of two new angiography suites, a six bed coronary care unit and a six bed
intensive care unit. The additional works will result in a total of 114 beds
on completion.
"While we have yet to complete Stage 1 of the redevelopment, Healthe Care
identified the opportunity to add additional key acute specialties to the
current service mix at Hurstville. The decision to commence with Stage 2 was
supported by a strong business case from the operator backed by surgeon
commitments and will deliver long term financial and portfolio
diversification benefits for Vital" said Mr Carr.
Hibiscus Coast Community Health Centre, Whangaparaoa - sold for $4.2m
Vital is also announcing the unconditional sale of the Hibiscus Coast
Community Health Centre in Whangaparaoa. The sale price reflects the most
recent independent market valuation as at 30 June 2014.
Mr Carr said "The transaction represents a continuation of our on-going
capital management strategy to appropriately recycle capital out of low
value, lower growth assets into more attractive portfolio developments as
they arise."
The sale was to a private investor. Settlement is scheduled for 31 October
2014 and the sale proceeds will initially be used to repay debt.
"The announced developments and asset sale continue to support Vital's
overall strategy of creating capacity to meet rising demand for healthcare
services. Vital is a committed investor in healthcare real estate and we are
pleased to partner again with Healthe Care to undertake brownfield
developments which remains a successful strategy to enhance the long term
quality and value of Vital's portfolio." said Mr Carr.
- 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$629m, 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 74% 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.
End CA:00256959 For:VHP Type:GENERAL Time:2014-10-29 16:48:15
