This article is from the Australian Property Journal archive
Healthscope is set to sell five of its hospital businesses to Healthe Care Australia and the real estate of four hospitals to SAITeys McMahon for $63.2 million.
The hospitals which have been earmarked for sale include the Brisbane Waters Private Hospital and Dubbo Private Hospital in New South Wales, the La Trobe Private Hospital in Victoria, the North West Private Hospital in Tasmania and the Palm Beach Clinic in Queensland.
The sale of the Brisbane Waters Private Hospital is subject to Australian Competition and Consumer Commission approval, which is scheduled for October 01, 2006
Healthscope’s managing director Bruce Dixon said the decision to sell the hospitals was taken following a review of the company’s hospital portfolio, which identified these hospitals as being non-core, and after Healthscope had received an attractive offer for these hospitals.
The sale price of the hospitals totals $63.2 million, which compares favourably against the book value for these assets of $38 million.
Healthe Care is a privately owned Australian based healthcare company which operates five hospitals, which it purchased from Ramsay Health Care in December 2005.
Dixon said the proceeds of this sale will be used to reduce debt.
This transaction is expected to be earnings neutral in the current year.
The net gain on sale, after taking to account transaction and other relevant costs, will be reported in the first half results for FY2007 as a non-recurring contribution to profit.
By Nelson Yap
