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NorthWest Healthcare announcement

Wednesday, 05 December 2018

NorthWest Healthcare Properties Real Estate Investment Trust (NorthWest), a Canadian based healthcare focussed real estate investment trust and owner of NorthWest Healthcare Properties Management Limited (NWM), the Manager of Vital Healthcare Property Trust (Vital), has filed the attached  notice regarding Healthscope Limited (ASX:HSO) with ASX.

On 20 November 2018, NorthWest announced that it had acquired on-market 1.0% of shares in Healthscope. On 30 November 2018, NorthWest amended the forward derivative contract to increase their interest in voting shares to up to 13.41%, at an ingoing average price of $2.360062 per share as detailed in the attached Form 604.

Healthscope is one of Australia’s leading private hospital operators with a portfolio of 43 hospitals concentrated in large metropolitan centres throughout Australia. As previously stated, an acquisition of Healthscope's underlying hospital related real estate is of interest to NorthWest and Vital in line with their long term strategy to invest in healthcare real estate assets in the Australasian market.  Consistent with their Conflicts Policy, NorthWest and Vital currently intend to pursue any potential Healthscope real estate acquisition jointly, with scope to introduce other capital partners as appropriate.

Recognising the above, as an extension of the current loan arrangement with NorthWest, Vital has agreed to lend a further A$40m (A$81m in aggregate) to NorthWest.  This additional funding reflects Vital’s proportionate contribution to the funding required to support the acquisition of the 13.41% position.  The loan is repayable in 12 months, unless the parties agree to a shorter timeframe.  The loan continues to be on arm’s length terms and interest is payable by NorthWest.