Vital Healthcare Property Trust has announced the sale of $87 million worth of non-core assets at a 2% discount to book value.
The sales have been contracted since April 2024.
In addition, three developments have reached practical completion, with an 81% lease rate.
Vital now has approximately $150m remaining to spend on its committed development pipeline across seven projects.
The company said this amount can be fully funded from existing debt capacity.
Indicative valuations were also provided, showing a modest decline of about 1% over the half year ending June 30.
"Recycling capital from non-core assets into new developments has, and will continue to, improve the quality and resilience of Vital’s portfolio," Vital fund manager Aaron Hockly said.
Sold are three Bolton Clarke aged care assets, a Hobart development site and the Napier Medical Centre.
Vital is considering selling another NZ$180m of assets.
In a development update, Vital said it has almost finished doubling the size of Ormiston Hospital in Auckland and its contribution to redeveloping Wellington's Wakefield Hospital has reached the agreed cap of $91.5m.
Most of its portfolio - 60% by value - will be fully independently valued by June 30, it added.
