Vital Healthcare starts A$165m Adelaide project, signs A$260m South Australia work lately

Carpark up, rest of the development is now planned by Vital in Adelaide. Photo / supplied

Listed medical landlord Vital Healthcare Property Trust has released further details of a A$165m ($171.6m) Adelaide project it has begun, taking to A$260m its South Australia work announced in the past month.

The business has a three-stage project in Adelaide's Playford where it is building a medical centre and hospital.

It has finished the first stage, which is a A$24m 450-bay car park.

It has consent for a A$49m medical specialist centre and has signed a A$93m deal with Calvary Health Group for Vital to build a private hospital with eight operating theatres and a 120-bed hospital.

The company is holding its AGM online today.

The three-stage development is opposite the Lyell McEwin Hospital, it said.

"A core expertise of our business is in the sourcing, planning and delivering of market-leading healthcare precincts that service critical community needs on a large scale. The Playford medical, retail and hospital precinct was a compelling opportunity for Vital given its accessibility, central location and proximity to the existing Lyell McEwin Hospital, which we expect will maximise the value of the healthcare services offered," the business said.

The company has been continuously raising capital from its New Zealand unitholders to spend in Australia lately.

For example, last month, it completed a $115m placement after announcing a $140m capital raising offer.

In 2019, New Zealand unitholders denied NorthWest's attempts to list Vital on the ASX. The business has more assets in Australia than here and is expanding far faster across the Tasman than here.

Shares are trading on the NZX around $2.94, giving a market capitalisation of $1.6b.