Vital Healthcare adds Acurity's Royston hospital to deal after getting OIO approval

Friday 1st December 2017

Vital Healthcare Property Trust has bought Acurity Health Group's Royston hospital for $54 million, having got Overseas Investment Office approval to acquire two other hospitals in the private operator's portfolio.

Auckland-based Vital today said it got OIO approval to buy Acurity's Bowen and Wakefield hospitals in Wellington, which had been holding up the deal's settlement, and added the Hastings hospital with plans to expand the Royston hospital. The expanded deal commits Vital to spend up to $106.5 million developing the three hospitals, with Acurity signing up to 30-year leases on the sites.

"Our agreement with Acurity to enter into a 30-year lease and commitment to an immediate development project at Royston affirms our combined vision to enhance Royston’s long-held reputation as a quality private hospital serving the Hawke’s Bay region," Vital chief executive David Carr said in a statement.

Earlier this month, Vital chair Graeme Horsley told unitholders at the annual meeting he expected OIO approval in the coming months, and said Vital and Acurity are both keen to partner up on future real estate opportunities. Vital specialises in medical property investment, while Acurity operates private hospitals around the country.

Vital units slipped 0.7 percent to $2.185 today, having gained 8.9 percent this year.

(BusinessDesk)

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