New Zealand-listed Vital Healthcare Property Trust has acquired its management rights from Canadian parent Northwest REIT, for NZ$213m (€104m).
Vital Healthcare said it issued a placement to raise NZ$220m to pay for “termination payment as compensation for the relinquished management rights” and to strengthen its balance sheet to enable it to expand in Australia’s Gold Coast and elsewhere.
Northwest REIT, which has managed the trust since 2011, owns a 3.1% stake Vital Healthcare, an operator of a diversified portfolio of healthcare assets, including private hospitals, aged care facilities and outpatient buildings in Australia and New Zealand.
The trust said Chris Adams and Michael Groth would be retained as CEO and CFO respectively under new employment agreements. Vital will retain key management personnel and the majority of Northwest’s healthcare property team, embedding a fully established management platform to advance Vital’s strategy.
Northwest REIT, which has AS$2.6bn of assets in Australia, will continue to provide support services to the new Vital Healthcare management under a transitional services agreement with an initial 24-month term.
Graham Stuart, chair of Vital, said: “Internalisation marks an important milestone for Vital, positioning the business to deliver stronger and more sustainable returns for unit holders.
“By bringing management in-house under a strengthened governance framework, Vital will be well-positioned to unlock future growth, enhance transparency and accountability, and fully align management and investor interests.“
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