- Centuria is acquiring the old Cotham Private Hospital, which closed in mid-2018
- Joint venture between Medibank and 42 specialist doctors will provide treatments
- Centuria now has around $1 billion of healthcare assets
Cotham Private Hospital, which was closed back in June 2018, will be demolished to make way for a new $64 million private hospital, thanks to a unique partnership between Centuria Capital Group (ASX: CNI) and Medibank.
The new 30-bed $64 million short-stay private hospital in the leafy Melbourne eastern suburb of Kew will consist of four operating theatres, a chemotherapy clinic and a procedure room.
42 specialist doctors have formed a joint venture with Medibank to deliver the hospital, with Centuria to develop the vacant site at 209 Cotham Road.
For-profit hospital provider, Healthscope, closed the 60-bed hospital after deeming it was not viable to operate the facility. At the same time, the provider also ceased operations at the Geelong Private Hospital.
According to the Australian Financial Review, the site was sold to residential developer Hamton for around the $10 million mark – notably, less than the original asking price of $15 million.
Centuria Healthcare’s Managing Director, Andrew Hemming, said the project is central to the company’s strategy to partner with top-tier operators backed by secure lease covenants.
“We are delighted to partner with the joint venture doctors and Medibank to develop and own the real estate delivering this new short-stay surgical facility.
“This is a transformative project that can change the landscape of the healthcare sector and we are pleased to be the real estate partner of this forward-thinking project.”
Andrew Hemming, Centuria Healthcare Managing Director
Mr Hemming added Centuria now has around $1 billion worth of healthcare assets under its management.
Centuria is still to complete the acquisition of the site and is obtaining all appropiate planning and licencing approvals.