Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Vital Healthcare Falls Most in Decade on Share Sale

Nov. 2 (Bloomberg) -- 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.

To contact the reporter for this story: Chris Bourke at cbourke4@bloomberg.net

To contact the editor responsible for this story: Iain Wilson iwilson2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.