Australian Assets Sales Successfully Completed
Statement made by Miles Wentworth, Chief Executive Officer, Calan Healthcare Properties Limited
The Directors of Calan Healthcare Properties Limited said that the repositioning of its Australian investments had now
been successfully completed. This represents another milestone in the process of converting non yielding assets into
yielding assets and the disposal of non strategic assets to fund the $NZ50 million Epworth Eastern project in Melbourne
as outlined to unit holders at the last Annual Meeting.
The Board noted that all Australian assets sold as part of this process were realised above their book value.
The last asset to be sold in order to complete the Australian repositioning was Brighton Private Hospital, which was
sold in June 2002 to The Cabrini Property Association. Cabrini contracted to pay interest to Calan on unpaid monies
until the date of settlement. This sale was settled in full at the end of June 2004. Settlement proceeds from this sale
of $A5.13 million were applied to reduce bank borrowings.
The Australian properties sold realised $A8.405 million and delivered gains on sale of $A890,000 (i.e. 10.6%) in excess
of book value.
Calan’s investment into Australia is now comprised of:
Epworth Eastern – a 21,000sqm (includes 8,500sqm of car parking), 6 levels above ground and 3 levels below ground,
private surgical/medical hospital. This facility is currently under construction and due for completion later this
calendar year and is fully leased. The major tenant is the Epworth Foundation, one of the most respected hospital
operators in Australia. Epworth will lease slightly in excess of 90% of the facility on a 20-year lease with the balance
of the space being leased by the radiology group MIA Group and diagnostic group Sonic Healthcare on ten-year lease
terms. On completion this building will have a value that approximates $NZ50 million. Box Hill Gardens Medical Centre –
a 2,200sqm, 4 level medical consulting facility located immediately adjacent to the new Epworth Eastern. The facility
houses over 50 medical specialists and is fully leased. Strong demand exists for space given the building will be
physically integrated with Epworth Eastern over all floors and is also within close proximity of Box Hill Public
Hospital. As at 30 June 2003 the building was valued at $NZ10.7 million.
Brighton Rehabilitation – a 3,200sqm purpose built rehabilitation facility with a licence for 67 beds. The facility
offers a comprehensive range of services including specialised rehabilitation units for orthopaedic / musculo-skeletal,
neurological and cardiac patients. The facility also includes a comprehensively equipped purpose built rehabilitation
gymnasium and hydrotherapy pool. The sole tenant of this facility is Epworth Foundation. As at 30 June 2003 the building
was valued at $NZ11.6 million.
The repositioning of the Australian assets has delivered facilities that are well located with quality tenants and long
leases. This further enhances the tenant and geographic diversification of Calan Healthcare Properties Trust.