NZX-listed hospitals and medical property specialist Vital Healthcare wants to raise $220 million to internalise management and expand Gold Coast and Sydney properties.

Current manager, Northwest Healthcare Properties Management, has struck a deal to internalise the management of the business, Vital said today.

Units will be issued at a discount to Friday’s trading price, it said.

The offer will be conducted by way of a $190m underwritten placement and a $30m unit purchase plan.

Vital chairman Graham Stuart said internalisation marked an important milestone for Vital, positioning the business to deliver stronger and more sustainable returns for Unit Holders.

“By bringing management in-house under a strengthened governance framework, Vital will be well-positioned to unlock future growth, enhance transparency and accountability, and fully align management and investor interests.

“This transaction creates a scalable platform as Vital continues to grow its leadership in healthcare real estate,” he said.

The trust cited two Australian property developments: Coomera stage 1A on the Gold Coast and Macarthur stage 2 in Sydney.

The placement will be conducted during the course of today.

New units will be issued at a fixed price of $1.95.

That is a 9.5% discount to the dividend-adjusted closing price of $2.156 on Friday.

Northwest, which has held the lucrative management contract for several years, won’t participate.

It has also agreed to an escrow arrangement through to the release of Vital’s first half result in February and to not sell down below a 10% stake until after the release of Vital’s FY26 result next August.