This article is from the Australian Property Journal archive
CANADA’S NorthWest Healthcare Properties will make a $165 million investment into South Australia, with a new healthcare precinct at Playford.
NorthWest is developing the precinct through its NZX-listed Vital Healthcare Property Trust, with the move bringing the group’s healthcare infrastructure investment into South Australia to over $260 million in just a month, including the purchase of the Tennyson Centre in Adelaide and an adjoining development and expansion parcel for $92.75 million.
“A core expertise of our business is in sourcing, planning and delivering market-leading healthcare precincts that service critical community needs on a large scale,” said Craig Mitchell, president and CEO of NorthWest, ANZ.
The development, which is located across from the Lyell McEwin Hospital at Playford, will be delivered in three stages, with the already completed first stage comprising a circa $24 million 450 bay multi deck car park and 1,7000sqm of retail.
“The 450 bay car park and retail component will be open to South Australians from early December, marking the first activation of the Playford healthcare precinct that we are developing,” said Chris Adams, executive director of projects at NorthWest.
Tenants at Stage 1 include IGA, Medimart and Australia Post, with SA Health serving as the anchor tenant for the carpark, with the remaining 50% left for casual parking.
Stage 2, which has been approved, will include a circa $49 million specialist medical centre spanning around 6,000sqm across four levels.
“Design of the ~$49 million purpose-built Specialist Medical Centre has significantly progressed and construction is expected to commence in mid-2022,” added Adams.
This second stage, which is set to commence construction in mid-2022, is currently approximately 60% pre-leased to tenants including radiotherapists Genesis Care, radiologists Radiology SA, pathologists Clinpath and day oncologists Calvary Health Care, in addition to a pharmacy, medical consulting suites and a café.
“The Playford medical, retail and hospital precinct was a compelling opportunity for NorthWest 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,” added Mitchell.
Stage 3, which is currently under a signed memorandum of understanding, comprises a circa $93 million private hospital, which includes provisions for eight operating theatres and up to 120 day and overnight beds, to be operated by Calvary Health Care.
“We are pleased that today’s announcement marks the second time within a month that NorthWest has announced a multi-million dollar healthcare infrastructure investment in South Australia, following on from Vital Healthcare’s acquisition of the Tennyson Centre in October for $93 million,” said Mitchell.
NorthWest plans to eventually establish an airbridge connecting the new private hospital to the Lyell McEwin Hospital, allowing for service delivery between the two facilities.
“We are delighted to continue supporting the people of the greater northern region of South Australia,” said Martin Bowles, national CEO at Calvary Health.
“Being part of the NorthWest private health care precinct allows Calvary to offer additional benefits to the northern community including a new Calvary hospital, which will replace the current Calvary Central Districts Hospital, and, being immediately adjacent to the major public hospital in the catchment, the ability attract best in class surgeons and specialists.
The private hospital is expected to commence construction by January 2023.
