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$150m capital raising to support new developments

Wednesday, 07 October 2020

NorthWest Healthcare Properties Management Limited, as manager of Vital Healthcare Property Trust, today announced it intends to raise approximately $150m of new equity capital through a $125m underwritten placement of new units and a $25m UPP.

The net proceeds of the offer will allow the Manager to pursue opportunities which are expected to provide earnings growth for Vital. In particular:
• ~$100m of brownfield developments have been progressed and are either being announced today or are expected be announced in coming months; and
• the Manager is in advanced discussions to acquire a premium hospital in a metropolitan area for $95m, leased to a major private hospital operator.

In addition, the Manager has progressed the sale of several regional assets which are anticipated to raise approximately $100m in early 2021.

The proposed transactions are aligned with Vital's 5-year portfolio strategy:
• The developments and acquisition support AFFO target growth of 2-3% per annum.
• Portfolio WALE is expected to increase from 18.6 to 19.4 years.
• Further tenant and geographic diversification.

Vital's Fund Manager, Aaron Hockly, said
"Having outlined Vital's new 5-year portfolio strategy in the FY20 results, we are pleased to announce a capital raising to allow us to deliver on this strategy. In particular, we have a strong development pipeline and are in advanced discussions to acquire a premium metropolitan hospital to be leased to a major private hospital operator for 30 years. The combination of the developments, potential acquisition and targeted asset sales would improve key portfolio metrics including an extended WALE and improved tenant profile."