Acquisition of multi-stage development site in Sydney

Vital Healthcare Property Trust (Vital) has acquired ~27,840 square metres of leasehold land in Campbelltown, Western Sydney for A$76.6m including development of a GenesisCare Cancer Centre.

The acquisition is subject to the satisfaction of conditions precedent including finalisation of development conditions and Council approval of the transfer of the leasehold interest to Vital. The acquisition payments includes payment for development rights, stage 1 development fund-through and tenant incentive but excludes transaction costs.

The acquisition enables Vital to develop, over time, a leading healthcare precinct exceeding 32,000 square metres of gross floor area in one of Australia’s fastest growing population zones in partnership with the landowner, Campbelltown City Council.

Development is expected to occur in the following three stages:

1.~A$52 million, four-storey cancer centre of excellence on a 4,473 square metre site. GenesisCare has pre-committed to lease the 2,713 square metre building plus 65 car spaces for an initial term of 15 years providing a net yield on costs of ~4.0%. GenesisCare is one of the leading providers of integrated cancer care globally with 350 clinics across the US, UK, Australia and Spain. The low site coverage allows for future expansion over time. Development is expected to take 16 months from early 2022.

2.~10,000 square metres of land for development of a proposed day surgery and mental health facility. Vital’s manager, NorthWest Healthcare Properties Limited, is in advanced discussions with one of Australia’s largest hospital operators in relation to this potential development. Final costs, timing of spending and nature of development are dependent on finalising agreements with a suitable tenant or tenants.

3.~13,000 square metres of land for future healthcare and ancillary development which may include education and research related uses.

An investor presentation including artist’s impressions of built form is being released as part of this announcement.