Vital Healthcare to spend A$14.5 million on Victorian hospital

Vital Healthcare Property Trust, the listed hospital developer, has announced a A$14.5 million project for its South Eastern Private Hospital in Melbourne, and is expanding its land base in Newcastle.

The development will add 60 new beds and more car parks to its Noble Park hospital, which is operated by Healthe Care, over the next 12 months, the Auckland-based property trust said. It has also bought a parcel of land opposite its Lingard Private hospital in Newcastle for A$3 million, with Healthe Care agreeing to lease the land as a carpark until final development decisions are made.

The property trust is investing in private hospital facilities in New Zealand and Australia as it expects demand to increase from an ageing population, a rise in chronic disease and higher patient expectations. About 47 percent of Australians have private health care cover for hospitals, compared to about 30 percent of New Zealanders.

In February, Vital reported a 21 percent drop in first-half distributable income to $16.3 million as it faced a bigger tax bill relating to a lease transaction, having benefited from a tax credit a year earlier.

Vital shares were unchanged at $1.635.