Funds manager and developer group Centuria Capital has kick-started the development of its latest project, a $75 million private hospital in Melbourne’s east as it builds a $1.7 billion portfolio in the booming healthcare sector.
Construction of Adeney Private Hospital will be operated by a doctor-led joint venture with Medibank’s Amplar Health business, covering 4696 square metres and located on the corner of Adeney Avenue and Cotham Road in the eastern Melbourne suburb of Kew.
A render of the Adeney Private Hospital, on the corner of Adeney Avenue and Cotham Road in Kew.
The new hospital replaces a decommissioned 1970s hospital on the same 209 Cotham Road site, which was demolished in May 2022.
Centuria Prime Partnerships (CPP), a joint venture between Centuria and an investment vehicle sponsored by Morgan Stanley Real Estate Investing, is developing the property and will retain ownership on completion in mid-2024.
Centuria Healthcare managing director Andrew Hemming said the hospital would aim to align the interest of patients and operators and create more “cost-effective and care-oriented outcomes”.
“Centuria has worked closely with the operator to design a fit-for-purpose property that caters to modern healthcare procedures, including specifically curated operating theatres and recovery spaces to maximise operational efficiency,” Hemming said.
The operator has committed to a 20-year lease and the Victorian-based construction company, Hansen Yuncken, is the appointed building contractor.
Healthcare real estate has grown into a mainstream sector with Dexus, Charter Hall, the HomeCo business’s newly listed HealthCO Healthcare & Wellness REIT, Elanor Investments and Queensland Investment Corporation (QIC) all investing in a range of private hospitals, mental health facilities and diagnostic imaging.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.