Development land acquired to expand mental health hospital

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 1 of 4

MARKET RELEASE
9 February 2022
Development land acquired to expand mental health hospital in Sydney
Vital Healthcare Property Trust (Vital) has acquired 4,340sqm of land adjacent to existing
Vital asset, The Hills Clinic. The Hills Clinic is a specialist mental health hospital 100% leased
to Aurora Healthcare Australia (Aurora Healthcare) located in north-west Sydney,
approximately 28kms from the CBD.
The acquired land is subject to a leasing pre-commitment from Aurora Healthcare
enabling expansion of the existing hospital with additional beds, group rooms and other
facilities. Aurora is Australia's largest specialty private mental health provider with 1,000
beds across 16 facilities.

Total development costs, inclusive of the land, are expected to be ~$50m and will be
rentalised at an initial yield of ~5%. The expansion lease is expected to have the same
term as the existing lease which has 25 years remaining with rent growing annually in line
with CPI and market reviews every 10 years.
Fund Manager, Aaron Hockly said:
“We are thrilled to have acquired such an important development site, adjacent to
one of our existing hospitals – The Hills Clinic – and extend our partnership with
Aurora, who we have worked with to establish this clinic as a highly-regarded
mental health facility. The Hills Clinic is experiencing significant growth in demand
for the critical services it provides, and we’re pleased to continue working with
Aurora to meet this demand.

High-quality treatment facilities for mental health patients are increasingly critical in
the community with mental health materially under-serviced in Australia and New
Zealand. We look forward to increasing this capacity through our new
development with Aurora, furthering our strong commitment to increasing access
to mental health. Following completion of this expansion and other committed
development projects, Vital will have ~1,300 mental health beds in its portfolio (all
currently in Australia)."

Aurora Chief Executive Officer, Ms Julia Strickland-Bellamy said:
“Demand for mental health services in this region has been growing at an
increasing rate. This pressing need for expanded treatment options for Sydney’s Hills
community has, today, further extended our partnership with Vital.
The Hills Clinic is a highly successful mental health service model; it attracts patients
from across Australia due to its specialised treatment for young adults. This

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 2 of 4

expansion enables The Hills Clinic to further broaden its specialised mental health
services for our existing patient population, while introducing new treatment
offerings to meet demand. Young adults will remain a key part of our expanded
service while eating disorders, PTSD for first responders, trauma and addictions are
all under consideration.

Patients can expect an enhanced treatment experience through expanded
facilities earmarked as additional group therapy rooms, patient activity areas
including outside space and a gymnasium, as well as private doctors' consulting
rooms.

Not only will this address unmet demand for accessible private mental health
services with purpose-built facilities, it will also provide recruitment opportunities for
psychiatrists, allied health, nurses and staff generally to support this growing service.
We look forward to working together to deliver critical mental health treatment
through this exciting new hospital development.

Australia-wide, Aurora Healthcare has committed to significantly investing in
expanded private mental health inpatient, day patient and outpatient services
and facilities to meet unmet demand. The company has also invested in a new,
online mental health service to facilitate accessible mental health services for all
Australians."

Development is planned to commence in 2023 and be completed within 15 months with
funding to come from existing debt facilities.
The acquisition is consistent with Vital’s strategy of focussing on its development pipeline
particularly to increase exposure to key population areas such as Sydney.
– ENDS –

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
Page 3 of 4

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
About Vital (NZX code VHP):
Vital Healthcare Property Trust is an NZX-listed fund that invests in high-quality healthcare
properties in New Zealand and Australia including private hospitals (~82%
*
of portfolio
value), ambulatory care facilities (~13%
*
of portfolio value) and aged care (~5%
*
of
portfolio value).
Vital is the leading specialist listed landlord of healthcare property in Australasia and
currently has a portfolio valued at ~$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

__________________________________

* All figures are as at 31 December 2021
Disclaimer:
This announcement has been prepared by NorthWest Healthcare Properties
Management Limited (the "Manager") as manager of the Vital Healthcare Property Trust
(the "Trust"). The details in this announcement provide general information only. It is not
intended as investment, legal, tax or financial advice or recommendation to any person
and must not be relied on as such. You should obtain independent professional advice
prior to making any decision relating to your investment or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated.
This announcement may contain forward-looking statements. Forward-looking statements
can include words such as “expect”, “intend”, “plan”, “believe”, “continue” or similar
words in connection with discussions of future operating or financial performance or
conditions. The forward-looking statements are based on management's and directors’
current expectations and assumptions regarding the Trust’s business, assets and
performance and other future conditions, circumstances and results. As with any
projection or forecast, forward-looking statements are inherently susceptible to
uncertainty and to any changes in circumstances. The Trust’s actual results may vary
materially from those expressed or implied in the forward-looking statements. The
Manager, the Trust, and its or their directors, employees and/or shareholders have no
liability whatsoever to any person for any loss arising from this presentation or any

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited
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information supplied in connection with it. The Manager and the Trust are under no
obligation to update this announcement or the information contained in it after it has
been released. Past performance is no indication of future performance.
The information in this announcement is of general background and does not purport to
be complete. It should be read in conjunction with Vital’s other market announcements
lodged with NZX, which are available at www.nzx.com/companies/VHP.