VHP
26/06/2013 09:44
RIGHT
REL: 0944 HRS Vital Healthcare Property Trust
RIGHT: VHP: Vital Pro rata rights issue & prelim portfolio revaluation
Vital announces pro rata renounceable rights issue and preliminary portfolio
revaluations
Vital Healthcare Management Limited (the 'Manager'), the manager of Vital
Healthcare Property Trust (the 'Trust' or 'Vital'), today confirmed it
intends to raise up to NZ$39.2 million of new equity capital through a pro
rata renounceable offer of new units to existing unitholders (the 'Offer').
Graeme Horsley, Independent Chairman of the Manager said "The Board considers
it appropriate to seek further equity capital to be used initially to reduce
bank debt. It will also provide additional flexibility to progressively fund
Vital's on-going capital expenditure programme, or may be applied to
acquisitions as they arise. It was of paramount importance to the Board that
this Offer be in a form that allows existing unitholders of Vital the
opportunity to participate on an equitable basis and in priority to other
prospective investors. A pro-rata renounceable rights issue gives unitholders
that opportunity".
The Trust intends to raise up to NZ$39.2 million of new equity through a
1-for-10 pro rata renounceable rights issue (entitlements to fractions of a
unit will be rounded up to the nearest whole number). The issue price for new
units will be $1.275 per unit.
The new units will rank equally with existing units on issue, including for
the final quarter distribution for the financial year ending 30 June 2013,
expected to be paid in September 2013. The Offer will not be underwritten
however, unitholders who take up all their rights will be eligible to
participate in an oversubscription facility to the extent there is any
shortfall in acceptances under the Offer.
NorthWest International Healthcare Properties Real Estate Investment Trust
('NorthWest') has an interest in 20.02% of the units as at 21 June 2013, held
through one or more related or associated entities. NorthWest has indicated
to the Board it will ensure that those entities take up their full
entitlement to new units being issued under the Offer and that one of those
entities will apply for additional new units under the oversubscription
facility. NorthWest has agreed that its related or associated entities will
not apply for, or be issued with, new units that will in aggregate take
NorthWest's interest in Vital above 24.99% of all units on issue.
David Carr, Chief Executive of the Manager said "The additional equity
capital being sought will help further support the on-going delivery of
Vital's long term strategy of investing in quality healthcare and medical
related property".
Further details relating to the Offer will be provided in a simplified
disclosure prospectus to unitholders. The Manager expects to register the
simplified disclosure prospectus in early July and the Offer to open in late
July. No money is currently being sought and no applications for units will
be accepted or money received unless the subscriber has received a copy of
the simplified disclosure prospectus for the Offer made available by the
Manager. A person should consider that prospectus once available, in
deciding whether to acquire units.
2013 preliminary portfolio revaluations
The Trust also today announced a preliminary unaudited portfolio revaluation
increase of $9.9 million for the year ending 30 June 2013. The overall gain
comprised $3.5 million for the New Zealand part of the portfolio and $6.4
million for the Australian part of the portfolio. The revaluation gain
equates to approximately 1.6% when measured against the forecast book value
as at 30 June 2013. The overall value of the Trust's property portfolio is
expected to increase to $624.8 million.
The valuations were undertaken by independent valuers and are preliminary at
this stage. They remain subject to the Trust's 30 June 2013 year end audit
and will be confirmed in the Trust's financial results, expected to be
announced on 23 August 2013.
Mr Carr said, "There were a number of core elements driving the increase.
One was the conclusion of a number of the value add development projects in
Australia resulting in the enhanced operational performance at those
properties. Other elements included a high percentage of the Trust's rental
income that was subject to structured annual growth, continued occupancy
levels close to 100%, and a general firming trend of capitalisation rates for
quality properties".
The weighted average market capitalisation rate for the portfolio will firm
by 16 basis points, to 9.09% over the 12 month period to 30 June 2013.
As a result of the gains the Trust's net tangible asset backing per unit is
expected to improve by approximately 3 cents.
- 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:00237815 For:VHP Type:RIGHT Time:2013-06-26 09:44:03
