Vital secures 30 year lease with MercyAscot

17 December 2013

Vital secures 30 year lease with MercyAscot

Vital Healthcare Management Limited (the ‘Manager’), the manager of Vital Healthcare Property Trust (‘Vital’) today confirmed that agreement has been reached with Ascot Hospital & Clinics Limited (‘MercyAscot’) for a new 30 year lease at Ascot Hospital in Greenlane, Auckland.

David Carr, Chief Executive of the Manager said “The early resolution of this lease expiry and the retention of New Zealand’s leading private hospital operator is testament to the long term partnership between Vital and MercyAscot. To have resolved Vital’s second largest medium term expiry and extended MercyAscot’s lease until 2043 is an outstanding result for the Trust”.

Andrew Wong, Managing Director of MercyAscot said “Whilst we considered alternative options leading up to the expiry of the current lease, we are pleased to have now made a long term commitment. It is a great outcome for both parties and we look forward to our continued long association with Vital at Ascot Hospital”.

Mr Carr said “The new 30 year term is effective from 1 July 2013 and includes annual CPI reviews and periodic reviews to market. As a result of the successful conclusion of the negotiations and other recent portfolio activity Vital’s weighted average lease term to expiry is forecast to increase to 14.8 years as at 31 December 2013”.

“Securing MercyAscot in advance of the current lease expiry further enhances the stability and diversification of Vital’s earnings” said Mr Carr.

ENDS

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