Calvary Wakefield private hospital and medical clinic sells for $50 million

A WELL known private Adelaide hospital has changed hands today for a price 20 per cent higher than its book value.

The new Calvary hospital, Adelaide, will open on Angas St in 2019.

A WELL known private Adelaide hospital has changed hands today for a price 20 per cent higher than its book value.

The Calvary Wakefield private hospital and medical clinic in the CBD has been bought by the ASX listed Cromwell Property Group for $50 million.

The hospital, owned by Australian Unity’s Healthcare Property Trust (HPT) occupies an entire block, of 8,275 sqm with a gross building area of 15,500 sqm. It has 180 overnight beds and 33 day beds and a medical centre together with 16 specialist medical subtenants.

Current tenant, Calvary Health Care, is expected to vacate the property after their lease expires in July 2019, once its new $300 million, 350 bed hospital in Angas St, next to SA Police headquarters is completed.

Chris Smith, head of healthcare property at Australian Unity, said other uses for the property had been considered.

“But we determined that selling the property was in the best interests of investors and we are pleased to have secured a sale price that is well in excess of the property’s current book value of $40.19 million,” he said.

Wakefield has been a strong performer for the HPT, which has more than 12000 investors and has delivered an internal rate of return of 16.9 per cent per annum for investors since its acquisition in 1999 he said.

“We’re very pleased that we will be able to recycle the capital from the sale of this asset to put toward our $600 million development pipeline.”

HPT will continue to invest in healthcare properties that produce strong returns for investors while supporting the delivery of health services Australian communities need Mr Smith said.