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New Zealand property trust pays $20 million for West Leederville hospital

Vital Healthcare Property Trust adds Abbotsford Private Hospital to its portfolio

A New Zealand-listed property trust has added a second Perth healthcare asset to its portfolio with the acquisition of a private West Leederville hospital in an off market transaction that was facilitated by Colliers International Executive Investment Services Henry Vu.

In a deal that settled on Friday, Vital Healthcare Property Trust, which invests in healthcare properties in Australia and New Zealand, paid $20 million for the Abbotsford Private Hospital, the 30-bed mental health hospital at 61-69 Cambridge Street.

Mr Vu said the privately owned and operated Abbotsford Private Hospital specialised in drug and alcohol rehabilitation and had a strong occupancy.

“The hospital was acquired with an initial 25-year lease to private hospital operator Healthe Care Australia, which operates 18 hospitals around Australia,” Mr Vu said.

“The sale also strengthens Healthe Care’s focus in WA where it also operates the Vital-owned Marian Centre in Wembley.”

Vital Healthcare Property Trust said the Abbotsford Private Hospital, which is just 1km from Subiaco’s health precinct, would support its asset diversification strategy.

It said a proposed expansion of Abbotsford would look to increase the facility to 60 beds with additional consulting suites.

In a second off-market acquisition, Vital Healthcare Property Trust also said it had purchased a 30-bed surgical hospital in Auckland valued at $33 million.

Although acquired separately, Vital said the Perth and Auckland facilities had a combined average yield of approximately 6.65 per cent.

Vital Healthcare Property Trust’s chief executive David Carr said the purchase of Abbotsford Private Hospital was in line with its growing interest in WA, which has the highest proportion of the population with private health insurance in Australia.

Vital Healthcare Property Trust purchased the Marian Centre in 2014.

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