Northwest Healthcare Properties REIT Reaches a Deal with Vital for Internalization of Management Rights for NZ$214 Million
The deal involves Northwest receiving NZ$214 million (around CAD$170 million) in cash in exchange for its external management rights over Vital Healthcare Property Trust. This internalization aligns with Northwest's strategic goals to simplify its business model, reallocate capital back to North America, and create value for unitholders. Internalizing Vital's management is expected to bring immediate operational and financial benefits, including reductions in general and administrative expenses, simplified operations, and a lower headcount. This should enhance efficiency and reduce costs.
Vital, in which Northwest will remain the largest unitholder with about a 24% equity stake post-capital raise, will fund the transaction through a capital raise that was recently completed with NZ$190 million raised. This broadens Vital’s unitholder base and liquidity.
The transaction strengthens Northwest’s balance sheet by providing proceeds used to reduce leverage and support growth initiatives. It also solidifies Vital's position as a leading healthcare infrastructure investor and developer in the Australasian market.