Entities in the NorthWest Healthcare Properties group of Toronto have signed a conditional contract to buy 11 hospital property assets from hospital property assets from ASX-listed Healthscope Ltd for $A1.258 billion, but the NZX-listed member of the group, the Vital Healthcare Property Trust hasn’t signed up to participate – yet.
At the beginning of December, Vital doubled its loan to its manager to support the acquisition of an increased stake in Healthscope. Vital had paid $A41 million to support the investment, and in December upped it to $A81 million.
Vital’s board, who are actually directors of the trust manager, NorthWest Healthcare Properties Management Ltd, came under fire from dissident corporate investors at the trust’s annual meeting in December. The dissidents got majority support for 3 of their 5 proposals, which were deemed non-binding, but failed in the bid to get their nominee elected to the management company board.
On Friday, a related Toronto-listed trust, the NorthWest Healthcare Properties Real Estate Investment Trust, said it & its controlled entities had entered into a conditional contract to acquire 11 freehold hospital property assets from Healthscope as part of a sale & leaseback transaction.
The New Zealand management company’s chief executive, David Carr, who was a director for a short time last year but reverted to his purely executive role at the annual meeting, said in Vital’s Friday release: “Vital is not currently a party to the property transaction. Vital views it as potentially an attractive opportunity and has had significant discussions about its participation in the acquisition of the portfolio with NorthWest. Those discussions have not as yet resulted in any agreement. Any such participation is subject to being able to reach agreement on commercial terms and documentation with NorthWest.
“Further, any participation by Vital would be subject to compliance with its trust deed & the Financial Markets Conduct Act, including necessarily being in the best interest of unitholders & on arms’-length terms.”
14 January 2019: Vital Healthcare updates on developments at 6 hospitals
21 December 2018: Vital Healthcare Property dissidents show muscle, and their arguments may yet hold sway
6 December 2018: Vital doubles loan to NorthWest for Healthscope acquisition
25 November 2018: Vital Healthcare management fees up for review, new action at Healthscope
23 November 2018: Northwest increases Healthscope stake to 11.1%
9 May 2018: Vital Healthcare’s parent makes new Australian investment
11 October 2013: Dalla Lana lifts Vital stake to 24.11%
5 December 2011: Toronto healthcare specialist North West pays $11.5 million for Vital management, holds 19.8% of trust
Attribution: Company release.