“In this area of Brisbane, there is strong demand for Peninsula Private’s existing services that exceeds the capacity of its current infrastructure,” NorthWest’s 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.”
Toronto-listed NorthWest has become the largest owner, manager and developer of healthcare real estate in the Australia and New Zealand markets.
Its unlisted institutional tie-up with GIC is one of the two main investment vehicles operated in the local market by the Canadian platform, alongside the New Zealand-listed Vital Healthcare Property Trust.
NorthWest’s assets under management in Australia and New Zealand total $6.7 billion, with another $2.8 billion in its development pipeline of 11 committed projects. Nine are under construction.
That pipeline includes a $600 million innovation, education and healthcare precinct in Geelong, Victoria’s second-largest city, a project that NorthWest is planning through a partnership with Epworth Healthcare.
Healthcare real estate is rapidly expanding as an institutional-grade asset class, through substantial amounts of investment from local players such as ASX-listed Dexus, Centuria, Home Consortium and RAM as well as unlisted groups such as Barwon Investment Partners.
The total value of the private hospital real estate sector is expected to reach $41 billion by 2041.