Vital raises funds for South Island entry

Newly opened Kawarau Park is being sold to Vital Healthcare Property Trust. PHOTO: SUPPLIED
Newly opened Kawarau Park is being sold to Vital Healthcare Property Trust. PHOTO: SUPPLIED
An NZX-listed healthcare property company, which is trying to make a "strategic entry" into the South Island, has completed its capital raise.

Last week, Vital Healthcare Property Trust announced it was undertaking a $200million capital raise to fund two South Island acquisitions, including Queenstown’s new health facility Kawarau Park, a deal worth $95million.

The company, which is managed by Canadian-listed NorthWest Healthcare Properties Management, listed in 1999. It owns private hospitals, ambulatory care facilities and aged-care facilities throughout New Zealand and Australia.

Yesterday, Vital told the market it had completed its institutional offer of a 1 for 8.54 pro rata accelerated entitlement offer.

The offer, which closed on Friday last week, saw 98% of eligible unit holders take up their entitlements and raised $109.8million.

NorthWest Healthcare also took its entitlements, subscribing $55million to the offer, representing its 27.5% share in Vital.

The balance of the offer was underwritten by Craigs Investment Partners and Forsyth Barr.

The new shares were expected to be allotted and would begin trading on Friday.

Vital’s stock opened at $3.12 a share after being in a trading halt since Thursday.

-- Riley Kennedy

 

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