Northwest Inks Queensland Hospital Deal

Expansion plans for Peninsula Private Hospital have been revealed after a sale-leaseback deal was inked for the 70-bed facility north of Brisbane.

Sitting on a 14,600sq m corner site at Kippa-Ring, the Healthscope-operated asset has been swooped on by Canadian investment powerhouse NorthWest Healthcare Properties.

Healthscope will continue to operate the facility, which is an acute surgical and rehabilitation hospital—with two theatres and one procedure room—in a high-growth corridor. 

Toronto-listed NorthWest’s acquisition will be through a wholesale joint venture established by its Australia arm with Singaporean sovereign wealth fund GIC.

As part of the deal, the asset-hungry NorthWest is planning an internal refurbishment and significant further development—including additional theatres and procedure rooms—on surplus land surrounding the existing facility, bringing its total investment to about $110 million.

“This significant development will ensure the hospital can meet the growing demand for medical services in the area, and that it is utilised to its maximum capacity,” a statement said.

Construction is expected to start early next year with a view to the new facilities being fully operational by late 2024.

“In this area of Brisbane, there is strong demand for Peninsula Private’s existing services that exceeds the capacity of its current infrastructure, and we look forward to expanding the surgical and medical service offering to the local community,” NorthWest executive director Richard Roos said.

“The opportunity to acquire the Peninsula Private Hospital facility and the site it sits on was highly appealing for NorthWest, given the quality of the hospital and its catchment in conjunction with the compelling opportunities to further upgrade the facility and expand its existing services through onsite development, as well as the opportunity to extend our long-held partnership with Healthscope.”

With the backing of GIC, NorthWest acquired half of Healthscope’s $2.5-billion divestment in 2019 of 22 hospital properties, which also were leased back to the operator.

In July, NorthWest filed plans for a medical-focused hub including a new hospital at Woolloongabba on Brisbane’s southside.

The proposal comprises an eight-storey building on an east-facing 3036sq m site at 7-17 Wolseley Street near the Princess Alexandra Hospital.

To be known as the Buranda Health Hub, it would provide 12,400sq m for a hospital and health care services—including suites for medical professionals—as well as a pharmacy and cafe.

Last year, the group made a failed $2.8-billion takeover bid for Australian Unity’s Healthcare Property Trust.