Centuria Capital Group has acquired a 3,000 sqm site in Sydney’s inner-city suburb of Alexandria to develop into a new $163 million private hospital.
The 28-32 Bourke Road property has an existing single-storey industrial building that will be developed into a 10,500 sqm hospital spanning seven levels.
The new hospital will be complemented by allied health operators, with 43% of the development pre-leased on a 15-year term.
The property was bought on behalf of the Centuria Prime Partnership (CPP) – a healthcare joint-venture with Morgan Stanley Real Estate Investing that was launched in March.
The new development will grow CPP’s portfolio to four properties worth more than $372 million on completion.
“Alexandria benefits from its proximity to Sydney’s CBD while providing significantly sized land parcels that are ideal for private hospitals, which require large floorplates and multiple levels,” Centuria Joint CEO Jason Huljich said.
“This is a rare opportunity to deliver new, bespoke healthcare infrastructure in such a central location for Sydneysiders, which is why we are confident it will attract other allied health operators seeking to co-locate at the hospital.”
Last month, the Centuria Healthcare Property Fund secured four healthcare assets located in Sydney, the Gold Coast and throughout Western Australia worth more than $115 million.
Other healthcare property deals include Australian Unity’s recent plans to build the new $150 million Matilda Meadowbrook private hospital in Brisbane’s south.
In February, NorthWest Healthcare Properties invested $76.6 million to buy a site in Campbelltown, Sydney and develop it into a multi-stage healthcare precinct.
The Centuria Healthcare Property fund also purchased an in vitro diagnostic manufacturing laboratory in Mt Waverley, Melbourne for $51 million last November.