60-bed mental health hospital on track for 2027 open date

A national mental health group has signed on to operate a new 60-bed private hospital in the CBD, with construction just weeks away ahead of a 2027 open date.

Avive Health will operate a new 60-bed private mental health hospital at Pelligra Group’s health and medical development on Wakefield St, committing to the project ahead of a planned opening date in early 2027.

Construction of Avive’s first hospital in South Australia is expected to commence in October, bringing 60 new mental health beds to the CBD, alongside on-site psychiatrist consultation suites and day program therapy spaces.

It will be the group’s third private mental health hospital nationally, following openings in Brisbane and on the Mornington Peninsula earlier this year.

Avive Health co-chief executive Mark Sweeney said the expansion into South Australia would help bridge the gap in the availability of mental health services across the state.

Artist’s impression of the new mental health hospital. Picture: Supplied by Avive

“There is a critical need for high quality, accessible mental health services in Adelaide,” he said.

“Our new CBD mental health hospital will provide patients with genuine choice in recovery and streamlined access to psychiatrists – all in a thoughtfully designed, welcoming environment. At Avive, doctors lead the way – from co-designing our hospitals to shaping every element of care.

“Our expansion into South Australia reflects our commitment to empowering psychiatrists and transforming patient outcomes through innovation and partnership.”

The hospital will form part of Pelligra’s transformation of the former Calvary Hospital site into a mixed-use health precinct already home to BreastScreen SA, as well as GP, ophthalmology, pharmacy, pathology, sleep clinic and allied health services.

Pelligra’s Ross Pelligra said the introduction of Avive would benefit the broader precinct, activating surrounding tenancies where “minimal” vacancies remain.

“There has been clear demand for a new mental health and rehabilitation hospital for years, and Avive Health’s arrival delivers exactly that,” he said.

CBRE’s Marcello Caspani-Muto, Sandro Peluso, Kai Wang and Jimmy Tat negotiated the lease between Pelligra and Avive, and Mr Caspani-Muto said the deal was likely to generate strong interest from other health and medical operators looking for a greater presence in the CBD.

“We are being approached on a weekly basis by notable healthcare users across South Australia who are either looking to relocate or expand their operations within the property,” he said.

“This activity will only accelerate with the news of Avive’s commitment.”