Vital purchased this property from Adelaide and today announced a fundraiser. Photo / provided

Listed medical owner Vital Healthcare Property Trust has purchased a cancer center in Adelaide for A $ 92.75 million and wants to raise $ 140 million in New Zealand to fund this and other development.

NorthWest Healthcare Properties Management said Vital purchased the Tennyson Center where specialists work in identifying, evaluating and treating cancer through oncology, radiation therapy, imaging and counseling services.

Aaron Hockly, Vital fund manager, said it was the first purchase of a specialist cancer center for the company.

Vital has two other properties of Adelaide.

“This adds several established healthcare operators to Vital’s tenant base and should provide continued growth for unitholders. We will look to expand the center on the development land acquired as part of this transaction,” said Hockly said.

The purchase includes 1920 m² of adjoining land intended for future development.

The $ 140 million capital increase will be done through a $ 115 million placement and a $ 25 million unit purchase plan. Forsyth Barr and Goldman Saches New Zealand subscribed to the placement.

NorthWest will purchase at least 37.4 million new units representing its 26.7% stake in Vital.

The company is now in a commercial shutdown, which should be lifted tomorrow.

The main risks are cited as the impact of Covid and its negative impacts on businesses. New Zealand investors are also taking currency risk, according to the investor presentation.

NorthWest, as director of Vital, “is currently convinced that the outbreak will not have a long-term impact on Vita’s position. However, there remains uncertainty as to when the impacts of Covid will occur. feel given factors such as the evolution of new variants of the virus and the complexity associated with the timing and logistics of vaccine deployment, ”said the presentation.

Risks related to tenant and rental income and property valuation are also mentioned, as well as financing, the use of management services and the fact that future distributions depend on the rents received from tenants across the country. Vital portfolio as well as expenses incurred in the operation.

Thus, future payments will depend on economic conditions, lease extension negotiations and supply and demand in the real estate market.

A year ago, Vital announced plans to raise $ 150 million for the expansion, including three large projects in Australia.

NorthWest said the offer was made through a guaranteed placement of $ 125 million of new units and a unit purchase plan of $ 25 million.

The money was for Vital to grow and increase his income and buy three real estate projects in Australia.

The shares were selling for around $ 3.01 on the NZX before trading stopped.

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This notice was published: 2021-10-12 20:34:33


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