Acquisition of multi-stage development site in Sydney

Acquisition of multi-stage
development site in
South West Sydney
FEBRUARY 2022

Contents
Transaction details 3
Key healthcare location for new precinct 4
Cancer care 5
GenesisCare 6
Strategic rationale 7
Funding 8
VITAL HEALTHCARE PROPERTY TRUST
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Located in the heart of Campbelltown,
~20kms south-west of Liverpool
Close to or in the broader health precinct that
includes Campbelltown Hospital and Western
Sydney University Medical School
1
The acquisition is subject to the satisfaction of conditions precedent, including finalisation of DA conditions and Council approval of the leaseholder interest transfer.
2
includes options; leasehold term for ~27,840sqm of land commences on practical completion of development.
Transaction details
~32,000 sqm
of potential gross floor area
Discussions underway with one of Australia’s largest hospital operators to develop a day surgery
and mental health facility on ~10,000 sqm of land
Acquisition price for full ~23,000 sqm metres of leasehold land across stages 2 & 3 is ~A$24.6m
~13,000 sqm of land in key health precinct; development options to be considered over time
Options for this development land include new research & education uses, medical
consulting and aged care
IN NEGOTIATION

STAGE 2
FUTURE

POTENTIAL

STAGE 3
Acquisition
1
of ~27,840 sqm 85-year
2
ground
lease in Campbelltown, Sydney
Expected to comprise three separate
development stages providing up to
32,000sqm of gross floor area
Total consideration of A$76.6m (including
stage 1 development fund-through costs)
Terms agreed with GenesisCare, one of the largest independent providers of cancer care globally,
to fund-through the development of a 4 storey cancer centre of excellence with 2,713 sqm of NLA
Total acquisition price and development costs for Stage 1

A$52m

Construction estimated to take 16 months from early 2022
15-year initial lease term to GenesisCare with 3% annual fixed increases
Additional development capacity expected to be available post-construction
completion given low site coverage
COMMITTED

STAGE 1
VITAL HEALTHCARE PROPERTY TRUST
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TRANSACTION

DETAILS
KEY HEALTHCARE

LOCATION
CANCER CARE
GENESISCARE
STRATEGIC RATIONALE
FUNDING

Key healthcare location for new precinct
The acquisition provides Vital with the
opportunity to deliver a new healthcare
precinct expected to comprise a Cancer
Centre (terms agreed), day surgery and
mental health facility and other ancillary health
and health education uses
The location supports a large and growing
catchment and is close to both a large public
hospital and a large medical teaching and
research provider
Last large land holding
available in Campbelltown
for healthcare precinct
development
Sydney CBD
Campbelltown
~50km to Sydney CBD
Subject Site
Macarthur Specialist
Consulting
Campbelltown
Private Hospital
Campbelltown
Public Hospital
Aged Care
Camden Rd
Hurley St
Cancer Cancer
CentreCentre
Mental Mental
HealthHealth
Health Health
FacilityFacility
Artist’s Impression
Camden Road
VITAL HEALTHCARE PROPERTY TRUST
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TRANSACTION

DETAILS
KEY HEALTHCARE

LOCATION
CANCER CARE
GENESISCARE
STRATEGIC RATIONALE
FUNDING

Cancer care
There are two key providers
in Australia: GenesisCare
and ICON Cancer
Cancer care is a growing
stand-alone field including
imaging, radiation, oncology
and consulting
Funding comes from a mixture
of government, private health
insurance rebates and patients
Artist’s Impression
VITAL HEALTHCARE PROPERTY TRUST
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TRANSACTION

DETAILS
KEY HEALTHCARE

LOCATION
CANCER CARE
GENESISCARE
STRATEGIC RATIONALE
FUNDING

Global annual revenue in
excess of A$800m
Largest private provider of
integrated cancer care in Australia
One of the largest independent providers of
cancer care globally with 350 clinics across
the US, UK, Australia and Spain providing
treatment to ~440,000 patients per annum
GenesisCare
Artist’s Impression
VITAL HEALTHCARE PROPERTY TRUST
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TRANSACTION

DETAILS
KEY HEALTHCARE

LOCATION
CANCER CARE
GENESISCARE
STRATEGIC RATIONALE
FUNDING

Opportunity to build on existing relationships
with key healthcare tenants notably GenesisCare
Significant development potential:
1. Immediate: fund-through
2. Medium-term: strong interest from hospital
operator to develop new mental health
and ambulatory care facilities
3. Longer-term: range of health and
education uses
Only prime located land available for
healthcare development in catchment
Catchment under-serviced with growing demand
Strategic rationale
Increase NSW
exposure
(25% to 27%)*
Increase ambulatory
care exposure
(13% to 15%)*
Artist’s Impression
*pro-forma, based on total consideration of $76.6m
VITAL HEALTHCARE PROPERTY TRUST
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TRANSACTION

DETAILS
KEY HEALTHCARE

LOCATION
CANCER CARE
GENESISCARE
STRATEGIC RATIONALE
FUNDING

Funding the transaction
~A$76.6m purchase price, tenant incentive and fund-
through costs to come from available bank facilities
Initial payments (~A$76.6m) are expected to increase
Vital’s balance sheet gearing* by ~1.7% on a stand-
alone basis over the stage 1 development period
HY22 property revaluations are expected to reduce
balance sheet gearing* by ~1.8% on a stand-alone
basis (to be confirmed on 24 February 2022)
Funding for future development (stages 2 and 3) will
depend on the actual development cost and its timing
~$3.12
anticipated NTA per
unit (to be confirmed
with interim results on
24 February 2022)
* Balance sheet gearing includes a range of assumptions, including but not limited to, no significant changes in
market conditions, and should be read in conjunction with the disclaimer on the back page of this document.
VITAL HEALTHCARE PROPERTY TRUST
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TRANSACTION

DETAILS
KEY HEALTHCARE

LOCATION
CANCER CARE
GENESISCARE
STRATEGIC RATIONALE
FUNDING

WWW.VITALHEALTHCAREPROPERTY.CO.NZ
Thank You
DISCLAIMER:
This document has been prepared by NorthWest Healthcare Properties Management
Limited (the Manager) as manager of the Vital Healthcare Property Trust (the Trust).
This document provides general information only and is not intended as investment,
legal, tax, financial product 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 document 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.
Any indications of, or guidance or outlook on, future earnings or financial position or
performance and future distributions are also forward-looking statements. 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 document or any information supplied in connection with it. The Manager and the
Trust are under no obligation to update this document or the information contained in it
after it has been released. Past performance is no indication of future performance.
The information in this document is of general background and does not purport to
be complete. It should be read in conjunction with Vital’s market announcements
lodged with NZX, which are available at www.nzx.com/companies/VHP.

---

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited


MARKET RELEASE
16 February 2022
Acquisition of multi-stage development site in South West Sydney
Vital Healthcare Property Trust (Vital) has acquired
1
~27,840 square metres of leasehold
land
2
in Campbelltown, Western Sydney for A$76.6m
3
including development of a
GenesisCare Cancer Centre.
The acquisition enables Vital to develop, over time, a leading healthcare precinct
exceeding 32,000 square metres of gross floor area in one of Australia's fastest growing
population zones in partnership with the landowner, Campbelltown City Council.
Development is expected to occur in the following three stages:
1. ~A$52 million
4
, four-storey cancer centre of excellence on a 4,473 square metre
site. GenesisCare has pre-committed to lease the 2,713 square metre building plus
65 car spaces for an initial term of 15 years providing a net yield on costs of ~4.0%
5

with annual fixed increases. GenesisCare is one of the leading providers of
integrated cancer care globally with 350 clinics across the US, UK, Australia and
Spain. The low site coverage allows for future expansion over time. Development is
expected to take 16 months from early 2022.
2. ~10,000 square metres of land for development of a proposed day surgery and
mental health facility. Vital's manager, NorthWest Healthcare Properties Limited, is
in advanced discussions with one of Australia's largest hospital operators in relation
to this potential development. Final costs, timing of spending and nature of
development are dependent on finalising agreements with a suitable tenant or
tenants.
3. ~13,000 square metres of land for future healthcare and ancillary development
which may include education and research related uses.


1
The acquisition is subject to the satisfaction of conditions precedent including finalisation of development
conditions and Council approval of the transfer of the leasehold interest to Vital.
2
Ground lease term is 85 years, including options.
3
Including payment for development rights, stage 1 development fund-through and tenant incentive but excluding
transaction costs.
4
Includes leasehold land acquisition payment, construction, holding and professional costs. Excludes development
management fees.
5
After deducting ground rent costs and allowing for the benefit of stamp duty savings due to the fund-through
structure.

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited



Fund Manager, Aaron Hockly said:
“A key focus for Vital is to acquire strategically located sites servicing a large, growing
population, so the opportunity to secure a site in the heart of Campbelltown, one of the
fastest growing cities in Australia, was a rare and valuable one.

We are pleased to announce the commencement of development of the Cancer
Centre of Excellence, which is the second in Vital's portfolio following our acquisition of
The Tennyson Centre in Adelaide in late 2021. The Campbelltown site is located 50km
south-west of the Sydney CBD and 20km south-west of Liverpool, where there is an
underservicing of private healthcare facilities. We are thrilled to expand our long-held
partnership with GenesisCare, who we will work with to deliver a market-leading cancer
centre and service the demand for cancer services in the South West Sydney growth
corridor.

In the longer term, we look forward to developing plans for a state-of-the-art healthcare
precinct at this site, bringing together the best healthcare providers and complementary
health services to improve and expand the delivery of health services to South West
Sydney."

GenesisCare, the largest private provider of integrated cancer care in Australia, is
currently implementing a national integrated cancer care programme to fix disrupted
care pathways caused by COVID-19. GenesisCare recently opened three new world-class
integrated cancer centres in northern Sydney, Maitland and Perth and acquired the
largest medical oncology provider in South Australia, Adelaide Oncology and
Haematology. In the next two years GenesisCare will open an additional six new centres,
three of which are in Sydney: Campbelltown, Frenchs Forest and Norwest.
General Manager for Genesis Care NSW, Fergus Rourke, said:
“We are excited to be extending our long-standing partnership with Vital Healthcare
Property Trust to deliver this critical service to patients from across South West Sydney
and the Southern Highlands.
South West Sydney is one of the fastest growing corridors in NSW and it is absolutely
critical that we invest in the right healthcare infrastructure to ensure the needs of cancer
patients are met now and in the future.
Our integrated cancer centre and research hub will provide patients access to radiation
oncology, medical oncology, allied health and wellness services, all in one convenient
location, as well as diagnostic imaging and pathology operated by trusted partners.
The centre will also have a strong focus on clinical trials and will provide patients access
to the latest state-of-the-art equipment and treatment advances."
The acquisition is consistent with Vital’s precinct and development strategies particularly
as a means to increase Vital's exposure to key population growth areas such as Sydney.

The acquisition, tenant incentive and fund-through development payments totalling
A$76.6m are expected to increase Vital's balance sheet gearing by ~1.7% on a stand-
alone basis over the stage 1 development period. Vital has previously announced ~$140m
of property valuation increases which are expected to be recorded as part of Vital's

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited


interim results (due to be released on 24 February 2022). Property revaluations are
expected to reduce balance sheet gearing by ~1.8% on a stand-alone basis, with NTA per
unit expected to be ~$3.12 (subject to audit confirmation).
An investor presentation including artists' impressions of built form is being released
contemporaneously with this announcement.
– 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
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

* Figures are estimates as at 31 December 2021 and remain subject to audit confirmation
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

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by NorthWest Healthcare
Properties Management Limited


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
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.
_________________________________