Vital confirms new developments, strategic land acquisitions

4 December 2014

Vital confirms new developments and strategic land acquisitions

Vital Healthcare Property Trust (Vital) is to commence a A$13.0m development project at Maitland Private Hospital (‘Maitland Private’) and a A$1.4m project at Lingard Private Hospital (‘Lingard Private’). It also announced a strategic property acquisition adjacent to Epworth Eastern in Melbourne to support future expansion opportunities at the hospital.

Maitland Private Hospital – new psychiatric ward and expanded rehabilitation services
Maitland Private is a 111 bed private hospital located approximately 30 kilometres north-west of Newcastle in NSW and specialises in surgery, acute medical, post natal, psychiatric and rehabilitation services.

Maitland Private underwent a A$9.9m development in 2010-11 adding 24 inpatient surgical beds, a fourth operating theatre and dedicated rehabilitation ward. In 2013 Vital undertook a further A$10.5m development which added 25 mental health beds and a stand-alone medical centre.

Following the submission of a strong business case from the operator, Vital has committed to a further A$13.0m third phase of development. The latest development consists of constructing a new stand-alone 42 bed ward with basement parking below. An additional parking deck will be added to the rear of the property. Additional minor works include the installation of a new lift. Practical completion is forecast to be November 2015.

David Carr, Chief Executive of the Manager said “This latest brownfield development will bring the total investment at Maitland Private to around A$33.4m over the last four years. The frequency of the projects reflects the strong post completion performance of the hospital as each phase has concluded. It’s another example of the need to create further capacity to meet the rising demand for healthcare services in the region.”

“This latest project illustrates how the Manager’s Australian based team, led by the Australian Managing Director, Richard Roos continue to deliver solid portfolio outcomes for investors. As part of the development we also secured a five-year extension to the existing lease, which will now expire in December 2037.” said Mr Carr.

Lingard Private Hospital – new theatre and refurbishment
Lingard Private is a 101 bed acute hospital located four kilometres south of the Newcastle CBD. With a major development being completed in 2013, Lingard Private is now a leading private hospital in the region.

With strong demand for services resulting in the existing six theatres operating at capacity, the hospital operator submitted a strong business case for construction of a new operating theatre (total now 7) and a complete refurbishment of an existing theatre to enable higher acuity procedures to be undertaken. As a result, Vital committed to a further A$1.4m investment.

The total forecast construction period is four months due to complexity and proximity to existing operating theatres. The project is forecast to be complete by February 2015.

Epworth Eastern expansion – strategic property acquisition
Epworth Eastern is a 184 bed acute hospital located in Melbourne’s eastern suburb of Box Hill, operated by Epworth HealthCare. It was constructed by Vital in 2005 and has undergone several minor internal reconfigurations over the last 5 years. As at 30 June 2014 the Epworth Eastern campus, including the hospital and adjacent medical centre, was valued at A$81.8m.

Due to capacity constraints, Vital and Epworth HealthCare are working together on a master-plan to add further capacity at Epworth Eastern over time.

To support the master-plan vision Vital has acquired additional properties adjacent to Epworth Eastern for A$3.5m.

Mr Carr said “Strategically, the acquisition provides a logical opportunity to expand the hospital over the medium term to support the growth in demand being experienced at Epworth Eastern. We are excited about working collaboratively with Epworth HealthCare as one of our largest tenants and a leading not for profit private hospital operator in Australia.”

About Vital Healthcare Property Trust
With a portfolio value of over NZ$628m, Vital Healthcare Property Trust (NZSX: VHP) is Australasia’s largest listed investor in healthcare real estate. Tenants include hospital operators and healthcare practitioners who deliver a wide range of medical and healthcare related services. Vital currently has a portfolio of 25 properties with 75% by value located in Australia and the balance in New Zealand. Vital aims to deliver a low-risk, medium-return investment profile for unitholders. The Manager of Vital Healthcare Property Trust is Vital Healthcare Management Limited.

www.vitalhealthcareproperty.co.nz

ENDS

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