Tuesday, 20 February 2018

Announcement

TRANSACT: VHP: Vital acquires hospital real estate assets from Acurity

01 Dec 2017 09:55NZX
Vital receives OIO approval to acquire Wakefield and Bowen Hospital real
estate; also acquires Royston Hospital real estate and commits over $100m to
future developments

Further to Vital Healthcare Property Trust''s (Vital) announcement on 11 May
2017 reporting a conditional partnership with Acurity Health Group (Acurity)
it confirmed today that, following receipt of Overseas Investment Office
(OIO) approval, it has:

o Unconditionally acquired the freehold land and buildings at Wakefield and
Bowen Hospitals in Wellington;

o Unconditionally acquired a third Acurity asset - the freehold land and
buildings at Royston Hospital in Hastings for $54m; and

o Committed up to $106.5m to brownfield development over the next four years
to expand the three hospitals.

Wakefield Hospital, Newtown, Wellington
In addition to the acquisition, Vital has also committed to the full
redevelopment of Wakefield Private Hospital alongside Acurity subject to
regulatory consents.

The completed development will include 8 operating theatres, 42 beds, a 3,000
sqm medical consulting building, over 260 carparks, supporting infrastructure
and patient and administration services. Expansion capacity will be built
into the design to allow for future growth as required.

Chief Executive of Vital''s Manager, David Carr said, "The redeveloped
Wakefield will be completed in stages to minimise disruption to existing
operations. Completion of the works will provide a sector leading, modern and
functional facility for Acurity to deliver exceptional quality healthcare to
patients for generations to come".

The total forecast capital commitment is up to $82m, with the works planned
to commence in 2018 and be completed mid 2021.

Bowen Hospital, Crofton Downs, Wellington
Vital also confirmed that subject to regulatory consents it has committed to
the development of necessary infrastructure for radiation oncology services
to be commissioned at Bowen Hospital.

The works will include the construction of two radiation oncology bunkers,
initially with one linear accelerator with capacity to increase to two as
demand increases.

This is the first private radiation oncology service for patients in
Wellington. The service is operated by Icon Cancer Care, Australia''s largest
private provider of cancer care, in partnership with Acurity.  Radiation
Oncology services are a logical expansion following the recent commencement
of private medical oncology services at Bowen by the Icon/Acurity
partnership.

The total forecast capital commitment is up to $11.5m, with the works planned
to commence in the first half of 2018 and forecast to take approximately 9
months.

Royston Hospital, Hastings
Vital has also unconditionally acquired the land and buildings at Royston
Hospital in Hastings and committed to an immediate development project
alongside hospital operator Acurity.

Subject to resource consent the development will see an expansion into
adjacent properties held for development and will incorporate an additional
two operating theatres, reconfiguration of patient admission and recovery
areas, and expansion of medical imaging.

Mr Carr said, "our agreement with Acurity to enter into a 30 year lease and
commitment to an immediate development project at Royston affirms our
combined vision to enhance Royston''s long-held reputation as a quality
private hospital serving the Hawke''s Bay region".

The total forecast capital commitment is up to $13m, with the project
expected to commence in late 2018 subject to regulatory consents and forecast
to take approximately 12 months.

Settlement of each of the above acquisitions is forecast to occur in December
2017.  All development capital expenditure is forecast to be rentalised at a
yield of approximately 7%.

- ENDS -

ENQUIRIES
David Carr, Chief Executive Officer
Vital Healthcare Management Ltd, Telephone 09 973 7301, Email
dcarr@vhpt.co.nz

Stuart Harrison, Chief Financial Officer
Vital Healthcare Management Ltd, Telephone 09 973 7302, Email
sharrison@vhpt.co.nz

Jason Kepecs, Manager, Investor Relations
Vital Healthcare Management Ltd, Telephone 09 973 7303, Email
jkepecs@vhpt.co.nz
End CA:00311270 For:VHP    Type:TRANSACT   Time:2017-12-01 09:55:54
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