This article is from the Australian Property Journal archive
Ramsay Health Care has sold three of its hospitals in South Australia to Little Company of Mary Health Care for $34.5 million.
The three hospitals – Wakefield, College Grove and Central District, were identified as not being strategic to the portfolio following a strategy review in August last year.
The sale of these hospitals and the home care business (Silver Circle), as well as the planned sale of the residential aged care business, completes the rationalisation of the Ramsay portfolio.
Ramsay’s managing director Pat Grier said the proceeds from the sale of these hospitals would be utilised to reduce debt and be immediately mildly accretive to core EPS.
“We received a very attractive offer to sell these hospitals and we believe the facilities will benefit significantly from being part of a hospital group with greater medical/surgical scale in South Australia.
“After the Affinity acquisition in April 2005 we announced our intention to review the make-up of our portfolio, resulting in our decision to explore the sale of our aged care businesses and now the sale of these hospitals.
“We move forward now with an exceptionally high quality portfolio of facilities. We expect to announce further details in the short term of our plans to invest in brownfields capacity expansion and enhancements at a number of our hospitals,” Grier said.
By Kathryn O’Meara
