Vital Healthcare acquires cancer centre in Adelaide
Vital Healthcare Property Trust has paid $93m for a specialist cancer centre in Adelaide, capping off a busy few days for its Canadian backer.
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Medical landlord Vital Healthcare Property Trust has acquired a specialist cancer centre in Adelaide for $92.75m.
The New Zealand-listed group has launched a $NZ140m capital raise to fund the acquisition and other investments.
Vital describes the Adelaide property, known a the Tennyson Centre, as one of the city’s “cancer centres of excellence”, with a mix of tenants operating in oncology, radiotherapy, imaging and consulting services.
The purchase includes 1920sq m of adjoining land held for future development.
Vital fund manager Aaron Hockly said the purchase was the fund’s first “cancer centre of excellence” and third significant property acquisition in Adelaide.
“It adds several established healthcare operators to Vital’s tenant base and is expected to provide ongoing AFFO (adjusted funds from operations) growth for Vital’s unitholders,” he said.
“We will look to expand the centre on the development land acquired as part of this transaction.”
The $NZ140m capital raise will be undertaken via a $NZ115m placement priced at $NZ2.90 per unit - a 3.7 per cent discount to last traded price.
Toronto Stock Exchange-listed NorthWest Healthcare Properties REIT manages Vital’s $2.7bn portfolio of healthcare properties across Australia and New Zealand via its Australian subsidiary NorthWest Healthcare Properties Management.
It will buy at least $37.4m new units representing its 26.7 per cent stake in Vital.
Forsyth Barr and Goldman Sachs New Zealand have underwritten the placement, which will be complemented by a $NZ25m unit purchase plan for retail investors.
Last week, NorthWest announced a partnership with Epworth Healthcare to deliver a $600m education, life sciences and healthcare precinct in Geelong, and acquired a 50 per cent stake in the existing Epworth Geelong hospital in Waurn Ponds for $89.8m.
It followed a decision in July to back down from a $2.8bn takeover bid for Australian Unity’s Healthcare Property Trust.
The 6567sq m Tennyson Centre is leased to medical tenants including Icon, Genesis, Nexus and Dr Jones & Partners.
Originally published as Vital Healthcare acquires cancer centre in Adelaide
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