The hospital investment and development trust, Vital Healthcare, is raising $140 million to buy a cancer treatment facility in Adelaide, South Australia.
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Vital Healthcare Property Trust has bought the Tennyson Centre for nearly A$92.8m (NZ$98.4m), which was in line with its five-year portfolio development strategy.
Trust manager NorthWest Healthcare Properties Management said the capital raise consisted of an underwritten placement of $115m, with a $25m retail offer, which it would participate in.
Vital's fund manager Aaron Hockly said the Tennyson Centre was the fund's third significant property investment in Adelaide and part of its plan to rebalance its portfolio to include more treatment facilities.
"It adds several established healthcare operators to Vital's tenant base and is expected to provide on-going AFFO (adjusted funds from operations) growth for Vital's unitholders," he said.
"We will look to expand the centre on the development land acquired as part of this transaction."
The $115m placement would be conducted during the course of today, with new units issued at a fixed price of $2.90 per unit, which was a 3.7 percent discount to the closing price of $3.01 on 12 October.
It said the net proceeds would be used to support additional acquisitions and developments.
The board also reconfirmed its guidance of a 9.5 cent per unit payout in FY22.