Vital Healthcare Property Trust’s manager has pushed back by a couple of weeks its update on a potentially large investment in Australian company Healthscope Ltd’s property portfolio.
Vital’s investment is intended to be in partnership with its Canadian parent, NorthWest Healthcare Properties REIT, which owns 24% of Vital’s units & 100% of the New Zealand trust’s manager, NorthWest Healthcare Properties Management Ltd.
The management company had intended to provide an update by the end of April, but said yesterday it would now be mid-May.
NorthWest REIT acquired 10% of Healthscope last May and lifted its stake to 13.4% by the end of November.
NorthWest borrowed from Vital to buy into Healthscope, starting with $A41 million, rising to $A81 million by the end of last year.
While that was happening, some larger local investors – critical of NorthWest’s fee structure compared to distributions to investors – put pressure on for a fees review and would have defeated NorthWest board nominees at the annual meeting in December if NorthWest had been excluded from voting.
On 1 April, NorthWest’s New Zealand management company said it had reached conditional agreement on a new governance & fees structure with its parent, the Toronto real estate investment trust.
At that point, the New Zealand manager also lost its chair, Claire Higgins, who took over in April 2018.
NorthWest REIT president Bernard Crotty has assumed the chair, with a proviso: “To ensure that board decisions continue to benefit from a majority of independent votes, one of the remaining independent directors will hold a casting vote in the event of an equality of votes.”
1 April 2019: Chair resigns as Vital Healthcare announces agreement after management company review
4 March 2019: Vital Healthcare Property profit drops, trust grows development book & looks at recycling assets
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
Attribution: Company release.