This article is from the Australian Property Journal archive
APH Holding has secured government tenant Eastern Health to anchor stage one of its $320 million Wellington Health precinct in Melbourne’s eastern suburb of Box Hill.
The private developer obtained a permit for the first stage in August. Wellington Health will deliver 100,000 sqm of medical and education facilities across dual towers at 12-22 Wellington Road, neighbouring the Box Hill Hospital and near the Epworth hospital and Box Hill Central and train station.
The first stage has a net lettable area of 30,000 sqm and 50,000 sqm of gross building area. Construction of the entire development will take six years, while over 10,000 full-time jobs will be created.
Eastern Health is one of Melbourne’s largest metropolitan public health services, providing emergency, surgical, medical and general healthcare services, and is looking to expand its footprint from one of its major sites at Box Hill Hospital.
They have signed up to a 40-year lease for a tenancy of up to 15,000 sqm. Eastern Health also works with nearby universities Monash, Deakin and La Trobe on health research and development.
Healthcare real estate is a fast-growing sector in Australia and has been attracting increased investment from developers, institutional players and private players.
Also in Victoria, the NorthWest Healthcare Properties REIT and Epworth Healthcare are planning a $600 million innovation, education and healthcare precinct in Geelong, and will be expanding the Epworth Richmond rehabilitation hospital close to the Melbourne CBD.
Eastern Health has come on board at Wellington Health One ahead of APH officially launching the expressions of interest campaign for leasing, showing high demand for the project.
“APH Holding is also in final negotiations with a few private healthcare and day surgery operators showing the strong demand for medical facilities and the growth of this sector in the area,” it said, adding that the strong interest had come in particular to the within the project which includes a sky lounge and club which will be exclusively made available to Wellington Health’s medical professionals.
Wellington Health One was unanimously approved by the City of Whitehorse Council.
Johnson Zhang, CEO of APH Holding said that to have an anchor tenancy of the building prior to the launch of EOI gave us further confidence in its vision.
“With the planning and construction of the suburban rail loop and the Box Hill station, the medical demand in and around Box Hill will be stronger than ever.”
Early works on Wellington Health One have already begun and the builders are in the final stages of being appointed. Practical completion for the building is slated for the June quarter of 2024.
The next stages of Wellington Health, Wellington Two, Wellington Three and Wellington Four, are currently under planning.
APH managed a diversified portfolio of about $620 million, and expects the asset value will increase to $3.6 billion over the next eight years. Wellington Health is the second approval for a major project from the City of Whitehorse in 2021. Earlier in the year, it got the green light for the first stage of a $1 billion business park in close-by Forest Hill.
