Vital settles asset sales and commences new development

28 September 2012

Vital settles asset sales and commences new development project at Mayo Private Hospital.

Vital Healthcare Management Limited (the ‘Manager’), the manager of Vital Healthcare Property Trust (‘Vital’) today announced that it had settled the sales of Pitman House in Point Chevalier and 188 Health Centre (Eastmed) in St Heliers totalling NZ$13.6 million and will commence a A$6.1 million development project at Mayo Private Hospital (‘Mayo’) in Taree, New South Wales.

Mayo Private Hospital is a 61 bed private hospital approximately 170km northwest of Newcastle and operated by Healthe Care Australia Pty Ltd. Mayo specialises in surgical, acute medical, post natal and rehabilitation services.

As noted when the property was acquired in December 2011, the site had existing development approvals for future expansion to meet both current and future demand for healthcare services in the region. The development includes construction of a third operating theatre, 24 additional single bed rooms (to 85) and a new stand-alone medical centre with additional car parking to cater for the new medical centre. The works are planned to be completed early 2013 and on completion will generate a forecast return of circa 10%.

Chief Executive of the Manager, David Carr said “the Mayo development will improve the quality and value of the asset and help drive operational benefits and efficiencies for Healthe Care. Furthermore, it again demonstrates Vital’s ability to improve portfolio performance and deliver enhanced returns to unitholders.”

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