Vital Healthcare Falls Most in a Decade on Share Sale, Australian Purchase

Vital Healthcare Property Trust, a New Zealand-based owner of medical real estate, fell the most in more than a decade in Wellington trading after it announced a NZ$151 million ($116 million) share sale to partly fund the acquisition of Australian properties.

Vital Healthcare agreed to buy 12 medical and hospital properties from Essential Healthcare Trust for A$164.5 million ($163 million), it said in a statement today. The company plans a one-for-one rights at NZ$1.05 a piece, a 22 percent discount to yesterday’s closing price, it said. It will be the largest fund raising on New Zealand’s stock exchange this year.

The deal will increase Vital Healthcare’s distributable income, the average lease lengths of its properties and provide more exposure to Australia’s health-care sector, the company said. The properties include surgical and psychiatric hospitals in Queensland, New South Wales, Victoria and Tasmania.

“This transaction aligns with our long-term strategy, enhances portfolio metrics and is forecast to improve unit holder returns,” Bill Thurston, chairman of Vital Healthcare Management Ltd, the trust’s manager, said in the statement.

Vital Healthcare shares fell 10 cents, or 7.5 percent, to NZ$1.24 at the 5 p.m. market close in Wellington, their biggest decline since May 16, 2000. Earlier the stock dropped as much as 8.2 percent.

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