Wednesday 01 June 2016 10:23 AM
Vital Healthcare flags A$84 mln spend to expand Australian portfolio
By Paul McBeth
June 1 (BusinessDesk) - Vital Healthcare, which owns and develops property for hospitals and healthcare providers, plans
to spend A$84 million to expand existing operations across the Tasman and make a series of new acquisitions.
The unit trust's manager, Vital Healthcare Management, said it will spend A$64 million on brownfield developments for
its Australian hospital portfolio and a further A$20 million has been earmarked for "strategic acquisitions" to enhance
its existing assets. Once completed, Vital anticipates the spending will raise the quality of its property portfolio and
lift earnings.
"This suite of value and earnings enhancing projects highlights the continued growth in demand for healthcare services
provided by market leading operators across our portfolio," chief executive David Carr said in a statement. "We expect
to see more of these organic opportunities over time."
Vital is betting on a strong long-term outlook for the healthcare sector, buying properties on both sides of the Tasman
which have similar demographics with ageing populations in need of medical services.
The property investor's project pipeline includes a A$23.6 million development of its Lingard Private Hospital in
Newcastle to boost capacity, A$22.4 million to expand Maitland Private Hospital in East Maitland, New South Wales, A$9.9
million to add mental health and rehabilitation services at Toronto Private Hospital in Toronto, NSW, and A$3.7 million
to modernise Dubbo Private Hospital in NSW. Vital has also flagged A$4.5 million to build another operating theatre at
Epworth Eastern Hospital in Box Hill, Victoria.
The units increased 0.2 percent to $2.26 and have gained 21 percent this year. The stock is rated an average 'sell'
based on four analyst recommendations compiled by Reuters with a median target price of $1.98.
(BusinessDesk)
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