Vital Healthcare Property Trust’s manager, Northwest Healthcare Properties Management Ltd, said yesterday it was well advanced on considering separation of its New Zealand & Australian property portfolios into separate trusts, ahead of a foreign exempt listing on the ASX. The primary listing would remain on the NZX.
Vital NZ would remain an NZ-managed investment scheme & PIE (a portfolio investment entity with tax advantages), and Vital Australia would be an Australian managed investment scheme.
Units in those 2 trusts would be stapled together, and the stapled group would continue to own the whole portfolio.
Vital announced the proposal as a value-add initiative at its annual meeting on 31 October. The trust manager expected the proposal to increase in distributions & the payout ratio for all unitholders.
Vital said yesterday: “In broad terms, the proposal is expected to provide Vital with access to larger & deeper pools of capital, improving its competitive position for future growth opportunities and ensuring it is an internationally competitive investment vehicle.”
The manager & its related parties wouldn’t be paid any additional fees for services provided in connection with the proposal, the manager’s incentive fee wouldn’t be affected by the transaction and the manager’s recently approved fee structure & governance changes wouldn’t change.
The board expects to seek unitholder approval of the proposal by the end of March. As a special resolution, it would require 75% support.
Grant Samuel will provide an independent advisor’s report.
Attribution: Vital release.