Vital Healthcare Property Trust has entered into a conditional partnership with Acurity Health Group Ltd as its long-term real estate capital partner to support growth & redevelopment initiatives for Acurity’s portfolio of private hospitals in New Zealand.
Vital management company chief executive David Carr said yesterday the first stage of this partnership included agreement to acquire the real estate assets at Acurity’s Wakefield & Bowen private hospitals in Wellington for about $68 million. This agreement remains subject to certain presettlement conditions being satisfied, including Overseas Investment Office & development project approvals.
Mr Carr said the development projects would include a significant redevelopment of Wakefield Private Hospital in Newtown and were likely to cost in the order of $100 million.
“With agreed lease terms of 30 years, a long-term partnership with Acurity at these established private hospitals is a rare & unique opportunity for Vital and strongly aligns with our scale & diversification strategy. The brownfield development pipeline was a key attraction, but to have also secured agreement to work alongside Acurity in relation to other opportunities in the New Zealand market was also important.”
Acurity’s third hospital is the Royston Hospital in Hastings. The NZX-listed company, formerly Wakefield Health Ltd, also owns Norfolk Investments Ltd, which owns & manages Grace Hospital in Tauranga in partnership with Southern Cross Hospitals, and holds 50% of Endoscopy Auckland Ltd & Laparoscopy Auckland Ltd. Integrated Hospitals Ltd, which owns the Mercy Ascot hospital group, holds the other 50% interest in those 2 companies.
After a complicated takeover in 2014-15, Acurity’s ultimate owner is the Evolution Healthcare Group, based in Sydney.
Attribution: Company release, Acurity & Evolution websites.