In a series of Healthcare real estate deals completed this week, the Vital Healthcare Property Trust has sold 3 hospitals worth $100m and will re-invest $175M into a Private Health Campus in Adelaide.
The NZ listed REIT sold 2 regional NSW private hospitals and 1 Tasmanian private Hospital to Real Asset Management’s (RAM) Essential Services REIT for a total price of $100m. The investment was transacted on a yield of 5.65%, which was a 14.7% premium to the June 30 YE book value. All 3 hospitals had a remaining lease term of 15 years.
The acquisition takes the fund’s assets to $500m enabling RAM to execute its strategy of floating the REIT in the first half of 2021.
The Vital Healthcare Property Trust concurrently announced the investment of $175m into the Playford Health Hub in Adelaide.
The first stage of the Playford hub involves the construction of a 1600square metre retail centre and a 450-bay multilevel car park of which 250 bays will be leased to SA Health on a long-term lease.
Subsequent stages comprise a 6000sqm specialist medical consulting building across three levels followed by a 12,000sqm private surgical and medical hospital, also over three levels. Vital is in talks with top-tier hospital operator Calvary Health Care to run that facility.
Vital Healthcare Property Trust is managed by Canadian giant NorthWest Healthcare Properties, a subsidiary of NorthWest Healthcare Properties REIT who is also the largest unitholder of Vital.
NWH REIT’s investments comprise interests in a C$6.2 billion diversified portfolio of 171 income-producing properties located throughout major markets in Canada, Brazil, Germany, Australia, and New Zealand.
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