Vital Healthcare acquires cancer centre in Adelaide

Vital Healthcare Property Trust has acquired a specialist cancer centre in Adelaide for $92.75m.

The 6567sqm Tennyson Centre is one of Adelaide’s leading “Cancer Centres of Excellence”, comprising high quality tenants who operate within the identification, assessment and treatment of cancer through oncology, radiotherapy, imaging and consulting services. The Centre is leased to medical tenants including Icon, Genesis, Nexus and Dr Jones & Partners.

The property includes 1920sqm of adjoining land held for future development.

The acquisition price reflects a 4.7% market yield.

The New Zealand-listed group has also launched a $NZ140m capital raise to fund the acquisition and other investments.

Vital’s Fund Manager, Aaron Hockly, said “This acquisition is our first cancer centre of excellence and our third significant property investment in Adelaide, South Australia. It adds several established healthcare operators to Vital’s tenant base and is expected to provide on-going AFFO growth for Vital’s unitholders. 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.