$150M private hospital in Logan axed after court appeal

One of Australia’s largest health care providers and insurance companies has ditched plans for a $150 million private hospital south of Brisbane, citing legal action and rising construction costs.

An artist impression of the nine-storey Meadowbrook Private Hospital which was axed after rising construction costs. Picture: LOED

One of Australia’s largest health and life insurance companies has ditched plans to build a $150 million private hospital project south of Brisbane, citing legal action and rising construction costs.

Australian Unity officially withdrew from building its Meadowbrook Health Hub and Private Hospital this week after the Planning and Environment Court upheld an appeal by the neighbouring shopping centre and car park owner.

The 1.62 hectare Nestor Dr site, which was the former Riverina animal stock feed mill, is sandwiched between the Meadowbrook Shopping Centre, anchored by Woolworths, and the Loganlea train station with a private car park to the west.

Horwell Property Investments and Prelate Investments, which own land on either side of the vacant lot, said the 90-bed hospital would generate high volumes of traffic, affect the road network, parking and the loading bay for the nearby shops.

The former Riverina animal stockfeed site at Meadowbrook is up for sale. Picture: Contributed

The appeal included claims that the hospital project would require land owned by Prelate and would compromise the growth of the district centre.

Further gripes were about the 40m height of the proposed hospital, which was 15m higher than the maximum for the area.

This week, Australian Unity put the land on the market with the asking price expected to be more than $12.5m after the site was purchased in 2021 for $11.55m with acquisition costs of $936,000.

The former Riverina site at Meadowbrook. Picture: Contributed

Australian Unity levelled the massive Riverina grain silos to make way for the development in 2022.

Australian Unity Healthcare Property Trust said it decided not to proceed with the Meadowbrook Private Hospital even though demand for private health services in the region remained strong.

“The ability to deliver a financially viable project has been challenging due to a number of factors, including the high cost of construction in Queensland, multiple challenges facing some private hospital operators, and potential costs involved in resolving an adjoining owner’s appeal regarding the site’s development approval,” Australian Unity said in a statement.

“Given the current construction environment in Queensland, we have determined the proposed Meadowbrook Private Hospital is not commercially feasible for the hospital operator, or in the interest of trust investors.

“Divestment of the site is considered to be in the best interests of the trust and will provide a purchaser with the opportunity to develop alternative uses for the site.”

A red marker at the site which is now on the market. Picture: Google Maps

Along with the private hospital, the plans had included a medical centre, medical office space, aged care facility, and space for a health education service.

The plans went out for public consultation last year after a public notification period and after the state assessed details about the transport links.

Logan City Council prepared a masterplan for Meadowbrook in 2016 which included guidelines for a health, education and wellbeing hub and supported the demolition of the existing Riverina animal stockfeed mill.

However, before the hospital precinct could be built the council had to amend its planning scheme to allow short-term accommodation and a hotel along with a childcare centre and a food and drink outlet.

Logan mayor Jon Raven said Australian Unity pulled out of the project, citing escalating construction costs and delays caused by the appeal from the owners of the shopping centre.

The car park at Woolworths Meadowbrook opposite the Logan Hospital. Picture: Contributed

“Our economic development team has worked so hard to identify and support this project, and unfortunately the appeal is something out of the council’s control,” he said.

“It’s incredibly frustrating for me as mayor, but the community, are the ones who miss out because their proposal met a strong need in the market for private health care services.”

Australian Unity’s withdrawal prompted a range of reactions from locals and stakeholders with some voicing their frustration at the shopping centre’s opposition, questioning the motivations behind blocking a development that could have potentially increased foot traffic and benefited local businesses.

Others expressed disappointment over the missed opportunity for improved healthcare facilities in the area.

Angela Paten, a healthcare worker at Logan Hospital, said health workers in the area were taken by surprise and disappointed by the news.

With Australian Unity’s exit and the land now on the market, the focus will shift to finding a new developer or alternative use for the site.

Originally published as $150M private hospital in Logan axed after court appeal