The health property investment trust, Vital Healthcare, plans to raise $150 million and sell $100m in assets in order to upgrade two Australian hospitals, and develop a new Adelaide health precinct.
Photo: Supplied / NZX
The NZX-listed Trust also hopes to acquire a private hospital at an undisclosed location, by the end of the calendar year.
The raise was announced today by the firm that manages Vital - NorthWest Healthcare Properties Management.
Vital fund manager Aaron Hockly said the raise would allow the firm to carry out its five-year portfolio strategy it laid out in August.
"In particular, we have a strong development pipeline and are in advanced discussions to acquire a premium metropolitan hospital to be leased to a major private hospital operator for 30 years.
"The combination of the developments, potential acquisition and targeted asset sales would improve key portfolio metrics."
If the acquisition did not proceed, the proceeds would initially be used to repay debt and then to fund further acquisition and development opportunities as they arose.
The raise would be made up of a $125m placement, with NorthWest committed to at least $31.9m.
The remaining $25m would be set aside for existing shareholders.
Hockly said healthcare investment remained a defensive asset class, underpinned by a growing demand with an ageing population on both sides of the Tasman, and enjoyed strong government and institutional interest and support.
The trust, which has the majority of its assets in Australia, has previously signalled it would like to acquire or set up a medical research facility in New Zealand, likely in conjunction with a university.