Healthcare Operators Sought for $100m Private Hospital

Plans for an 11-storey private hospital at Campsie are progressing after it received gateway determination for the increased height and floor-space ratio for the Canterbury Road site.

Developer HPG filed plans for the $100-million, 218-bed Campsie Private Hospital in 2020, but after the election of a new mayor and Canterbury-Bankstown Council the project is gathering momentum.

The private medical facility is expected to offer day surgery and private suites. The Urban Developer understands operators are now being sought for the day-to-day running of the hospital, which could break ground mid-2023. 

HPG is currently preparing an environmental impact statement to submit to the NSW government before the end of the year.

This is the first healthcare development for the Hong Kong-listed developer’s Australian arm following a recent win in the Planning and Environment Court for a signficant residential development at One Sydney Park. 

The developer had started investigating the highest and best use of the site, which was zoned B6, ahead of the pandemic, and is now well-positioned to capture the increasingly appetising health asset class. 

According to planning documents, the construction of the Campsie Private Hospital is expected to create 392 construction jobs and a further 1090 operational jobs once complete. 

It is also addressing a shortfall in acute medical care in the area.

“With the exception of a day surgery, HPG have identified that there are no acute or sub-acute private hospitals in the Canterbury Bankstown local government area,” planning documents said. 

“Subject to further discussions with Canterbury Hospital, it is also feasible that some public health services may be co-located at the proposed facility.

“The proposal would also complement Canterbury Hospital by providing a range of private elective procedures and facilities that support the public health system. It would also attract best-in-class medical practitioners, through offering consulting suites which are scarce in this area.”

A single-storey big format retail offering would make way for the $100-million hospital on the 4414sq m site at 445-459 Canterbury Road. 

Team2 Architects have been engaged alongside Mecone Town Planning to develop the vision for the sustainable design-led private hospital.

Consultation with the wider medical community and operators will inform the mix of the medical services provided, but HPG has suggested these would include inpatient and outpatient services, emergency and intensive care, maternity, day surgery, cardiac care, dialysis and oncology. 

The Urban Developer understands that HPG intends to file an EIS before the end of the year with a view to mobilising on the site mid next year following approvals. 

Barwon recently won approval for a $100-million private hospital on the Sunshine Coast, while ICC Development is pursuing plans for the Royal Parramatta Private Hospital neighbouring Parramatta Square, with plans for a medi-hotel above it. 

Some of Australia’s biggest healthcare property funds are also turning to colocated healthcare real estate assets as yields soften and the market grows more competitive.