Vital Healthcare Property Trust, the only NZSX-listed healthcare property fund, has reported an 11% rise in profits for the first quarter of the year to NZ$14 million (US$9.7 million) which was driven by a 13% rise in net property income to NZ$20.8 million.

Speaking at the group’s annual meeting, chairman Graeme Horsley said that he hoped to be able to confirm the acquisition of two of Wellington-based private hospital operator Acurity Health Group hospitals “in the next few months”.

Vital announced the NZ$68 million acquisition of Wakefield and Bowen Private Hospitals in mid May, but the agreement remains subject to Overseas Investment Office and development project approvals.

“For Wakefield hospital, as part of the acquisition, Vital has conditionally committed to a large scale redevelopment over the next three years, resulting in an effective total re-build of Wakefield Hospital,” he said.

The new Wakefield is expected to include eight theatres, 40 beds, and 265 car parks, with additional expansion capacity built into the design as required. Vital’s forecast capital spend is approximately NZ$80 million and is expected to start next year and complete completed in 2021.

The NZ$20 million refit of Bowen moves the hospital into radiation oncology services. Works will include oncology bunkers that will house a single linear accelerator with capacity to grow to two. The service will be operated by a joint venture between Acurity Health Group and Icon Cancer Care, Australia’s largest private provider of cancer care. The project is likely to start in the first half of next year and is expected to take approximately twelve months to complete.