You are using an older browser version. Please use a supported version for the best MSN experience.

Vital Healthcare raises $160m

NZ NewswireNZ Newswire 20/07/2016 Jonathan Underhill
© Getty Images

Vital Healthcare Property Trust has raised $160 million after its existing investors took up 87 per cent of the units in the two-for-nine renounceable rights offer.

Unitholders picked up 67 million of the 76.9 million new units, raising about $140m, while brokerage Forsyth Barr picked up $20m of units as the underwriter.

Vital Healthcare's biggest investor and owner of the manager, NorthWest Healthcare Properties Real Estate Investment Trust, took up its full entitlement worth $39.3m at the offer price of $2.08 per unit.

The offer was at a discount to the trading price at the time and the units last traded at $2.20.

They have gained 18 per cent this year, outpacing a 13 per cent increase for the S&P/NZX 50 Index.

Funds raised will let Vital repay debt and support its push for more scale and diversification, the hospital and healthcare property developer and investor has said.

In June Vital flagged a $64m pipeline of new brownfield development projects across its Australian private hospital portfolio.

It is also eyeing "a suite of strategic acquisitions of approximately $A20 ($NZ21.32) million" over coming months, it said at the time.

image beaconimage beaconimage beacon