Vital acquires hospital and three development properties

VITAL HEALTHCARE PROPERTY TRUST
Managed by NorthWest Healthcare
Properties Management Limited


vhpt.co.nz

MARKET RELEASE
Managed by NorthWest Healthcare
Pr operties Management Ltd
29 June 2021


Vital acquires a private hospital and three development properties

Acquisition of private hospital in Camberwell, Melbourne
NorthWest Healthcare Properties Management Limited (the Manager), as manager of
Vital Healthcare Property Trust (Vital), advises that Vital has agreed terms to acquire
Epworth Camberwell for A$82.7m
1
(plus costs). This property comprises a 4 level,147 bed
private mental health and specialist rehabilitation hospital that has excellent referral
patterns from nearby Epworth surgical hospitals. The hospital is situated on a 7,453 square
metre site located 9km east of Melbourne's CBD.
At settlement, the property will be subject to a new 20-year "triple net" lease to existing
Vital tenant, Epworth Foundation, the largest not-for-profit private hospital operator in
Victoria. The lease includes a deferred tenant incentive payable at the start of year four
at which time the lease term resets to 20 years (a three-year lease extension).
The lease provides a 4.78% initial passing yield reducing to 4.28% after adjusting for the
tenant incentive. The acquisition price and the incentive payment are fully supported by
an independent assessment of fair market value. The lease includes annual CPI rent
increases and a market review at year 15 of the initial term.
The acquisition is expected to complete prior to 30 June 2021.

Acquisition of three strategic properties
Vital has also acquired two strategic properties in South-East Queensland and agreed
terms to acquire a third in Auckland. All three properties provide significant development
opportunities within existing or emerging health precincts over the short to medium term
and the Manager is currently working on master planning and development proposals for
each of them.

1
Includes provision for a tenant incentive payable following the third anniversary of the commencement of
the lease

VITAL HEALTHCARE PROPERTY TRUST
Managed by NorthWest Healthcare Properties Management Limited
vhpt.co.nz
Page 2 of 4
Details of the three properties are:
1. In early June 2021, Vital acquired 3,036 square metres of developable land at 7-17
Wolseley Street, Woolloongabba, Brisbane for A$11.4m (plus costs).
This property is located in the Princess Alexandra Hospital precinct, one of
Queensland's largest health precincts that includes a 1,050-bed public hospital as
well as teaching and research facilities.
The property is not currently income producing but provides significant scope via
existing development controls which permit up to 15 levels for healthcare
purposes.
2. In mid-June 2021, Vital acquired 20,131 square metres of developable land at 195
Foxwell Road, Coomera, Gold Coast for A$9.4m (plus costs).

Artist's render of potential development
This site forms part of the proposed "Coomera Health Precinct" a key health
precinct identified by Queensland Health as the location of a new public hospital
to meet the needs of one of South-East Queensland's fastest growing areas.

VITAL HEALTHCARE PROPERTY TRUST
Managed by NorthWest Healthcare Properties Management Limited
vhpt.co.nz
Page 3 of 4
The property is not currently income producing but the Manager will undertake a
master planning process which is expected to be activated via a medical office
building of approximately 6,000 square metres as stage 1.
3. In mid-June 2021, Vital agreed terms to acquire a 749 square metre property at 61-
71 Park Road, Grafton for NZ$7.25m (plus costs). This property is opposite Auckland
City Hospital (New Zealand's largest hospital) and is surrounded by buildings
occupied by the University of Auckland's Medical and Health Sciences Faculty. The
site forms part of New Zealand's premium healthcare precinct.
The property is currently leased to a variety of tenants providing holding income
neutral to Vital's AFFO.
The acquisition is expected to complete in September 2021.
Executive Director of Development for the Manager, Chris Adams, said-
"The acquisition of these key sites enhance our pipeline of development opportunities
in established and emerging medical precincts. They also position Vital to deliver on
future healthcare needs in ambulatory care including hub and spoke service delivery
models and the greater alignment emerging between public and private sector
providers."
Vital's Fund Manager, Aaron Hockly, said-
"We are delighted to add four properties to Vital's portfolio comprising one large
income producing private hospital in Melbourne and three development opportunities
in Brisbane, Auckland and Gold Coast.
These acquisitions will support our strategy of continuing to grow Vital's earnings. The
acquisitions, and their anticipated development, draw on the Manager's existing
relationships with high quality tenants as well as our significant development
experience.
The four acquisitions are expected to be accretive to AFFO in year 1 and will be
comfortably funded from existing undrawn debt facilities, increasing balance sheet
gearing by ~3.2%. In addition, consistent with our successful record of delivery, the
developments are expected to provide both earnings growth and valuation upside for
unitholders as they complete. "
– ENDS –
ENQUIRIES
Aaron Hockly
Fund Manager, Vital Healthcare Property Trust

Tel 09 973 7301, Email aaron.hockly@nwhreit.com
Michael Groth
Chief Financial Officer, NorthWest Healthcare Properties Management Limited
Tel +61 409 936 104, Email michael.groth@nwhreit.com

VITAL HEALTHCARE PROPERTY TRUST
Managed by NorthWest Healthcare Properties Management Limited
vhpt.co.nz
Page 4 of 4
About Vital (NZX code VHP):

Vital Healthcare Property Trust is an NZX-li sted fund that invests in high-quality healthcare
properties in New Zealand and Australia including private hospitals (~83% of portfolio
value), out-patient facilities (~11% of portfolio value) and aged care (~6% of portfolio
value).


Vital is the only specialist listed landlord of healthcare property in Australasia and
currently has a portfolio valued at over $2.3 billion.

Vital is managed by NorthWest Healthcare Properties Management Limited, a subsidiary
of Toronto Stock Exchange listed NorthWest Healthcare Properties REIT, a global owner
and manager of healthcare property.

For more information, visit our website: www.vhpt.co.nz